Rural road construction under PMGSY set to halve in FY25 compared to FY24

Road infrastructure in rural areas is a crucial indicator of connectivity in rural India. But in FY25, only 10,660.7 km of roads had been built up to December. If the number is extrapolated to the full fiscal year, around 13,000 km of rural roads can be built by March 2025. If the pace of construction does not pick up in the last quarter of FY25, rural road construction this fiscal year will be half of the construction in FY24.

Data from the PMGSY Dashboard indicates that the total length of roads built under the Pradhan Mantri Gram Sadak Yojana (PMGSY) has declined over the past three years. In FY22, 42,003.9 km of roads were constructed. This figure dropped to 29,749.4 km in FY23, reflecting a 29 per cent reduction. The trend persisted in FY24 (RE), with only 26,099.6 km of roads constructed, marking a further 12.3 per cent decline.

The deceleration appears to be mainly because the scheme is approaching its target. From 2000 to 2024, a total of 8.2 lakh km of roads was sanctioned under the PMGSY, of which 7.7 lakh km — 94 per cent of the target — has been constructed to date, with a total expenditure of ₹3.3 lakh crore.

The Pradhan Mantri Gram Sadak Yojana (PMGSY) was launched in 2000 with the aim of providing all-weather road connectivity to unconnected habitations in rural India. It is a centrally sponsored scheme with a funding pattern of 60:40 between the Centre and the states for most regions. However, for the eight North Eastern states and three Himalayan states, the funding ratio is set at 90:10.

Data from the Union Budget indicates fluctuations in PMGSY allocations. In FY23, ₹18,783 crore was allocated, which declined to ₹17,000 crore in FY24 (RE), marking a 9.5 per cent decline. However, in FY25 (BE), the allocation increased to ₹19,000 crore, reflecting an 11.8 per cent increase.

In 2024-25, state-wise road construction data for the 20 largest states, based on GSDPs, shows that Uttar Pradesh (2,408.5 km), Bihar (1,055.78 km), and Rajasthan (946.4 km) had the highest road construction lengths in India. In contrast, Haryana (83.9 km), Kerala (103.4 km), and Gujarat (110.3 km) had the lowest road construction lengths during the same period.

The 32nd Parliamentary Standing Committee Report on PMGSY, released in July 2023, stated that the program has experienced delays in project implementation due to logistical issues or untimely fund releases by state governments. It suggested using the 2011 Census data to include habitations, as the current program still relies on the 2001 Census, resulting in the exclusion of many eligible habitations.

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