Highway construction and the awarding of new road projects in India fell to a seven-year low in 2025–26, reflecting a slowdown in project pipeline and tighter pre-bid conditions in the sector. Official data show that less than 10,000 km of highways were constructed during the year, marking the lowest output since 2019–20. At the same time, only about 7,000 km of new projects were awarded in FY26, indicating a contraction in fresh contracts entering the system.

Industry experts said the shrinking pipeline of new projects from NHAI and other agencies has intensified competition among contractors. In some cases, firms are reportedly bidding at rates up to 42 per cent below initial estimates in order to secure limited available work.