In a significant policy recalibration aimed at strengthening economic connectivity and freight efficiency, the Central Government is planning to discontinue the long-standing practice of converting State Highways into National Highways. The move follows a high-level review of the highway sector chaired by the Prime Minister, where infrastructure development priorities were realigned towards building economy-driven transport networks.
The proposed policy signals a shift in highway planning philosophy, placing greater emphasis on the development of economic corridors, greenfield expressways and freight-centric connectivity infrastructure. The objective is to accelerate logistics movement while strengthening the linkages between industrial clusters, manufacturing hubs and consumption centres.
Historically, several state governments have sought conversion of State Highways into National Highways primarily due to funding limitations. Once a State Highway is reclassified as a National Highway, the responsibility for its development, maintenance and upgradation shifts to the Central Government. Under the proposed framework, states will continue to retain ownership and maintenance responsibilities for their highway networks, while the Centre is expected to provide guidance through quality control standards and policy support.
India has already witnessed rapid expansion in its National Highway network over the past decade, growing from approximately 91,000 kilometres in 2014 to nearly 1.5 lakh kilometres. The expansion has been a key driver in improving connectivity across regions and facilitating faster movement of goods and passengers. However, policymakers are now aiming to optimise infrastructure investments by directing resources towards strategic transport corridors that deliver stronger economic multipliers.
Officials familiar with the policy direction indicated that highway development will increasingly align with freight movement requirements and industrial growth patterns. The ministry has been encouraged to prioritise projects that enhance supply chain efficiency, reduce transit time and support integrated logistics infrastructure.
Additionally, the government is exploring the possibility of acquiring additional land along major transport corridors with high economic development potential. Such land acquisition strategies are expected to support the emergence of future economic hubs, logistics parks and industrial clusters along newly developed corridors.
The policy shift reflects a broader approach under India’s infrastructure strategy to transition from purely connectivity-focused expansion to demand-driven, productivity-linked development. By strengthening freight-centric transport networks and enabling economic cluster growth, the government aims to enhance the overall efficiency and sustainability of the country’s highway ecosystem.
