India Budget 2024: Government to roll out next phase of rural road scheme

The government will launch the next phase of its flagship rural road scheme by suitably overhauling the extant programme to substantially widen the country's road network and alter the transport landscape.

Presenting the full Budget for FY25, finance minister Nirmala Sitharaman said the fourth phase of the Pradhan Mantri Gram Sadak Yojana (PMGSY) will be launched that will connect 25,000 rural habitations.

ET had first reported on April 18 the government’s plan to overhaul the rural road scheme.



The move assumes significance, as it aims to bolster transportation in remote areas, spur economic growth and alleviate poverty.

People familiar with the plans had earlier said the PMGSY revamp would focus on substantially expanding and upgrading the existing network of rural roads and linking them with nearby hubs and markets to bolster productive capacity of the economy and ensure ease of living.


Since its launch, about 0.8 million km of roads have been built under the scheme. Already three versions of the scheme—PMGSY-I, PMGSY-II and PMGSY-III—have been rolled out periodically by widening its scope and revamping the implementation method. Construction of roads identified has been completed above 90% in 18 states, with Goa touching 100%. But in certain hilly and north-eastern states, and Union territories, the completion is in the range of 58% to 89%.

A study on the impact of PMGSY, conducted by the World Bank in 2018, revealed that farm produce transported to markets for sale using roads built under the scheme increased 8% than before. The rate of primary employment in the non-farm sector rose about 13% because of the improved road network and the share of people with primary employment outside their habitation inched up 8%. Even the share of babies delivered at home dropped by 30% in connected habitations, leading to improved child mortality rate in rural areas, according to the study.