National Highway Construction and Project Awards in FY26

ongoing

Highway construction and project awards in India declined to their lowest levels in seven years during the financial year 2025-26. Total highway construction fell below 10,000 km for the first time since 2019-20, and project awards dropped to around 7,000 km. The slowdown is attributed to stricter requirements on land acquisition and statutory clearances before awarding projects, aiming to reduce delays and cost overruns. The government has shifted focus to developing economic corridors and expressways rather than incremental expansion of existing highways. Despite the slowdown, NHAI constructed 5,313 km of national highways, exceeding its target by around 15%.