The Union government has decided to move away from the routine practice of converting state highways (SHs) into national highways (NHs), adopting instead an “economy-focused” model that prioritizes industrial connectivity and freight efficiency. The policy change was highlighted during a recent high-level review of the highways sector chaired by Prime Minister Narendra Modi.
New Framework for State Highways
Officials said the transport ministry has been tasked with preparing a framework by the end of July to reduce the need for reclassifying state highways as national highways. Over the last eleven years, about 55,000 km of SHs were upgraded to NHs, expanding the national highway network from roughly 91,300 km in 2014 to nearly 1.46 lakh km today—a growth of around 60 percent.
From Expansion to Efficiency
While the past expansion has been a key government achievement, the new approach signals a shift from enlarging the network to improving the quality and efficiency of existing roads. Going forward, the focus will be on constructing greenfield expressways and dedicated economic corridors to speed up freight movement and connect industrial hubs, logistics parks, ports, and emerging growth centers.
Supporting States Without Reclassification
Instead of transferring highways to the Centre, state governments may receive lump-sum funding to upgrade and modernize their own roads, while maintenance responsibilities will remain with the states. Previously, once a state highway became a national highway, both funding and upkeep automatically shifted to the Centre—a process often relied upon by states with limited resources.
Quality and Connectivity
The Centre plans to set quality benchmarks and provide technical guidance, encouraging states to strengthen internal connectivity, including links between state highways and smaller ports. Officials believe that improving and widening existing corridors, rather than simply expanding the NH network, will produce stronger economic returns.
Focus on High-Capacity Arteries
With India’s total road network now exceeding 6.3 million km, attention is turning to building high-capacity transport routes capable of boosting industrial zones, warehousing clusters, and future urban hubs.
