India’s Highway Construction Pace May Hit a Roadblock

India’s rapid pace of highway construction may be slowing down. After reaching a peak in 2020-21, the construction rate has declined due to factors such as delayed project approvals, execution issues, and a shift away from traditional construction models. While government funding has increased, a significant portion goes towards repaying the National Highway Authority of India’s debt, limiting its ability to invest in new projects. As a result, the construction rate is projected to fall in the current fiscal year and remain lower in the near term.

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