India’s Highway Network Sees Strong Growth in Toll Revenue, Traffic: ICRA

India’s national highway network is on a strong growth path, with toll revenues and traffic volumes rising steadily over the past two years. A mix of higher vehicle throughput, an expanding logistics sector, and periodic toll rate revisions have pushed collections to record highs, according to new data from ICRA Analytics.

During the first nine months of 2025 (January–September), toll revenue rose nearly 16% year-on-year to Rs. 49,193 crore, compared to Rs. 42,474 crore in the same period last year. The number of toll-paying vehicles also grew 12% to 26,864 lakh, up from 23,920 lakh in 2024.

The data reflects not just the growing pace of road travel in India, but also how well the country’s expanding infrastructure and digital systems are performing under this increased load.

ETC at Record Highs

A major part of this growth comes from the widespread adoption of electronic toll collection (ETC). In 2024, ETC revenues on national highways touched a record Rs. 57,940 crore, an 11% jump over Rs. 52,316 crore in 2023.

In terms of volume, electronic toll transactions climbed from 30,383 lakh in 2023 to 32,515 lakh in 2024, registering a 7% annual growth. This shift toward digital payments has reduced congestion, improved toll efficiency, and allowed for more accurate revenue tracking across the country’s highways.

According to ICRA Analytics, toll revenues have grown faster than traffic volumes, reflecting not only an increase in the number of vehicles but also a higher share of heavy commercial vehicles and periodic revisions to user fees.

“The country’s highway network has experienced robust growth in toll traffic and revenue over the past two years, primarily driven by increased vehicle throughput and toll rate revisions,” said Madhubani Sengupta, Head of Knowledge Services at ICRA Analytics. “While traffic volumes have grown strongly, toll revenues have risen even faster, partly due to a higher share of heavy vehicles.”

Regional Distribution: The West and South Dominate

The report found that India’s toll revenue distribution has remained broadly consistent across zones over the past three years, with a gradual consolidation in the western and southern corridors. This stability suggests a balanced traffic flow pattern, but also highlights where the country’s strongest logistics and trade movements are concentrated.

In the nine months ending September 2025, West India led with nearly 30% of national toll revenues, followed by the South with 25% and the North with 23%. Together, the East and Central zones contributed roughly the remaining quarter, showing an even regional spread.

This regional pattern points to the continued economic activity along India’s western industrial belt and southern trade routes, both of which are critical to domestic and export logistics.

Freight-Heavy Corridors Fuel Economic Arteries

ICRA’s analysis highlights how India’s highways serve two distinct purposes: freight transportation in the country’s central, eastern, and western corridors, and passenger mobility in the north and south.

East, Central, and West India remain freight-dominant zones, where commercial vehicles account for more than half of total toll traffic. These regions are home to some of India’s most vital economic arteries, linking mineral-rich states to ports and manufacturing hubs.

For instance, NH-16, which connects Kolkata and Chennai through Odisha and Andhra Pradesh, supports strong mining-to-port traffic. Similarly, NH-53 (Surat–Nagpur–Kolkata) acts as a key logistics spine through Chhattisgarh’s mineral belt. Routes like NH-6 and NH-49, which cut across Meghalaya, Assam, Mizoram, and Odisha, continue to carry heavy industrial freight.

In western India, highways such as NH-48 (Delhi–Mumbai corridor) and NH-66 (Mumbai–Goa–Mangalore) form the backbone of freight movement between industrial clusters and major ports like Mundra, Hazira, JNPT, and Dighi.

“This reflects the strong industrial and logistics activity along India’s key freight corridors,” said Sengupta. “These highways serve as economic lifelines connecting production zones to consumption and export centers.”

Central Corridors Transition to Mixed Use

Interestingly, Central India’s highway network is evolving from purely industrial routes to mixed-use corridors that now balance freight and passenger movement. Highways such as NH-44, NH-47, and NH-52 are seeing a rise in intercity passenger traffic alongside traditional freight operations.

This shift signals the region’s growing urbanization and its role as both a transit hub and a developing consumption market. Improved connectivity between Tier II cities and regional industrial hubs has also boosted demand for personal and commercial vehicles, further supporting toll growth.

Passenger Traffic Dominates in North and South India

In contrast, North and South India remain passenger-led zones. Here, cars and jeeps account for nearly 65–70% of total toll transactions, driven by dense urban populations, commuter networks, and rising personal mobility.

Highways around Delhi NCR, Bengaluru, Chennai, and Hyderabad see significant daily traffic from office commuters and intercity travelers. The growing middle class and increased vehicle ownership in these regions continue to fuel steady toll collections.

“Overall, India’s highway system demonstrates a well-balanced multi-modal character,” Sengupta noted. “While the central, western, and eastern corridors propel freight movement, the north and south facilitate commuter and passenger mobility. Together, they form a highway ecosystem that supports both economic expansion and everyday connectivity.”

Looking Ahead: Sustained Growth Ahead

ICRA Analytics expects toll revenues to maintain a healthy trajectory through 2025 and beyond. With steady GDP growth, rising vehicle sales, and ongoing investments in road infrastructure, both traffic volumes and toll collections are likely to expand further.

The introduction of new expressways, better enforcement of toll compliance, and broader adoption of electronic payment systems will further streamline toll operations.

India’s highway story, once defined by patchy connectivity and long bottlenecks, is now increasingly about efficiency, reach, and resilience. The data from ICRA Analytics suggests a network that’s not just carrying more vehicles, but carrying the weight of India’s economic ambition, mile after mile.