Road and highway infrastructure stocks such as Larsen & Toubro, IRB Infrastructure Developers, Ashoka Buildcon, PNC Infratech, Roadking Infrastructure, Dilip Buildcon and NCC are likely to stay in focus amid continued policy emphasis on logistics efficiency and execution-led growth.
In Union Budget 2025â26, Finance Minister Nirmala Sitharaman allocated Rs 10.2 lakh crore towards capital expenditure, an 8.4% decline from Rs 11.1 lakh crore in the previous year. Despite the moderation, the Economic Survey underscores sustained momentum in road and highway development.
According to the Survey, a 26,000 km High-Speed Corridor (HSC) network is targeted by FY33, with 9,366 km already under implementation. The government plans to launch its first Public Infrastructure Investment Trust (InvIT) in 2026, after monetising Rs 1.52 lakh crore through Toll-Operate-Transfer (ToT) projects and private InvITs. A PPP pipeline of 13,400 km, valued at Rs 8.3 lakh crore, has been identified for the next three years.
Project execution norms are also being tightened, with the introduction of fixed-cost bidding, contractor performance ratings, stricter eligibility criteria and additional performance security for aggressive bids, aimed at improving quality and timely delivery.
The Survey highlights a sharp push towards digitalisation, mandating drone surveys for alignment planning, AI-enabled monitoring systems, pre-cast components for projects above Rs 300 crore, drone analytics for encroachment tracking, and AI-based detection of potholes and cracks.
The roads and highways sector is now transitioning from rapid network expansion to a stronger focus on logistics efficiency and quality, supported by high-speed corridors and multimodal integration under PM GatiShakti. This shift is seen as critical to reducing overall logistics costs.
India's national highway network expanded from 91,287 km in FY14 to 1,46,572 km as of December 2025, while operational high-speed corridors increased from about 550 km to over 5,300 km during the same period. The average annual highway construction rate more than doubled between 2014 and 2025 compared with the previous decade.
Parallel investments in dedicated freight corridors, economic railway corridors and modern signalling are also improving freight throughput and multimodal connectivity, reinforcing the infrastructure-led push to enhance transport efficiency across the country.
Read More: Budget 2026 Live Updates: Nirmala Sitharaman's Ninth Budget To Lay Ground For Further Reforms
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