India's road construction slows amid U.S.-Iran conflict material shortages
India's road construction has taken a big hit this year, thanks to the ongoing U.S.-Iran conflict.
Key materials like bitumen (basically the glue that holds roads together) are in short supply, and prices for everything from fuel to steel have shot up.
Contractors are struggling to get what they need, which is slowing down highway projects across the country.
Indian government launches emergency contractor compensation
Construction speed has dropped from 29.21km per day in 2024-25 to 23.74km per day in 2025-26.
With asphalt prices nearing ₹65,000 per ton and overall input costs jumping by 15-25%, with the aggregate impact on highway project economics estimated at up to 8%, it's been a tough stretch for builders.
To help out, the government has rolled out an emergency compensation plan so contractors can get paid faster and keep projects moving despite all the market chaos.