Centre and states announced road infrastructure projects worth over Rs 3.9 lakh crore in FY25: Report

The central and state governments have announced Rs 3.9 lakh crore of investment in road infrastructure in the financial year 2024-25 (FY25), according to a recent report by Bank of Baroda.

This shows a clear strategy to improve connectivity and boost logistics across the country.

Out of the total investment of Rs 3.9 lakh crore, the report mentioned that the central government has announced Rs 1.42 lakh crore for road infrastructure.


It said "In case of roads, out of a total allocation of Rs 1.4 lakh crore, projects worth Rs 0.67 lakh crore (47%) have been announced in Rajasthan".

The report highlighted that a large share of this, about Rs 0.67 lakh crore (47 per cent), will be spent in Rajasthan for building 28 flyovers. Assam will get Rs 0.5 lakh crore (35 per cent) to build around 1,647 km of roads, while Meghalaya will receive Rs 0.25 lakh crore (18 per cent) for constructing 136 km of roads.

On the state side, the total investment stands at Rs 3.7 lakh crore. About 67 per cent of this, which is nearly Rs 2.5 lakh crore, is focused on road transport infrastructure services. Gujarat is one of the top investors among states, with projects worth Rs 97,892 crore. Rajasthan follows with Rs 87,438 crore to build at least 2,829 km of roads. Odisha has also announced projects worth Rs 27,400 crore.

These investments are a part of the larger public sector Capex announced of Rs 11.1 lakh crore in the union budget for FY25. The central government contributed nearly two-thirds of this amount.

The focus on road development highlights how both the Centre and the states are working together to create stronger transport networks, which will help in economic growth and reduce logistics cost.

Looking at the bigger picture, the report also noted that governments and private companies announced new investment projects worth Rs 38.3 lakh crore for FY25 (April 2024 to March 2025).

This is the second-highest amount ever recorded since FY96. Of this total, 69 per cent of the investments are coming from the private sector, both domestic and foreign.

The remaining 31 per cent will be implemented by the public sector, including the central and state governments, local bodies, and joint ventures.

Among private investors, domestic companies are leading with 62 per cent of the total private sector projects. Renewable electricity is a key area for both private and public sector investments. Other sectors attracting domestic private investment include conventional electricity, chemicals, and steel.

The report clearly shows that road infrastructure is one of the important focus areas for both central and state governments in FY25.