Rating agency ICRA has projected that road construction in India could slip to a five-year low in FY2026, citing a likely slowdown in project execution and award activity. The agency estimates that total construction could decline to around 9,000–9,200 km during the year, compared with an average of over 10,000 km annually in recent years.
According to ICRA, factors such as election-related disruptions, slower pace of new project awards, and funding challenges are expected to weigh on the sector in the near term.
The completion of several large-scale projects in FY25 and a temporary gap before new ones gain traction may also contribute to the dip.However, the long-term outlook remains robust, with the government’s continued focus on infrastructure development under the Bharatmala programme and higher budgetary allocations for the roads sector. ICRA expects construction momentum to pick up again from FY27, supported by a strong pipeline of projects and increasing private sector participation.
