India’s road construction slows in 2026-27 due to fewer projects and monsoon delays, despite rising toll collections.

India's road construction under MoRTH is expected to slow to 9,000–9,500 km in FY2026-27, down from 9,500–10,000 km in the prior year, due to declining project awards and monsoon delays. Despite this, toll collections are forecast to grow 6–8% in FY2026-27, driven by economic and traffic growth, with modest rate increases of 2.5–3.3% tied to inflation. Intense bidding has led to large discounts—over 20% in EPC and 16–21% in HAM projects—due to high competition and shrinking order books. FASTag issues have been resolved, with developers receiving regular payouts.