India’s Infrastructure Order Awards Rise 12% as Highway and Railway Projects Gather Pace

India’s infrastructure sector continued to build momentum in June, with total project order awards rising 12% year on year to ₹96,300 crore, supported by a sharp increase in highway, railway and power sector activity. Fresh tendering also reached ₹1.7 lakh crore during the month, underlining the government’s continued focus on infrastructure-led economic growth.

According to a report by JM Financial, while monthly order awards were slightly lower than May levels, they remained above the average monthly ordering seen during FY26. The figures point to a healthy project pipeline that is expected to support construction activity over the coming quarters.

The highways sector remained the biggest contributor to new opportunities. Highway tenders more than doubled compared with the same period last year, reaching ₹82,200 crore. Road infrastructure continues to receive strong policy backing as the government pushes for faster freight movement, better regional connectivity and improved logistics efficiency under programmes such as PM Gati Shakti.

Railway infrastructure also recorded strong growth. Tendering activity in the sector increased 82% year on year to ₹19,200 crore, reflecting continued investment in network expansion, capacity upgrades, electrification and freight corridors. Indian Railways remains one of the country’s largest public infrastructure investors as it modernises assets to meet rising passenger and freight demand.

The power sector also witnessed significant developments. One of the largest contracts during the month was awarded to BHEL, which secured an engineering, procurement and construction package worth ₹21,000 crore for the 3×800 MW Meja Supercritical Thermal Power Project Stage II in Uttar Pradesh. The project highlights continued investment in strengthening India’s electricity generation capacity alongside the country’s growing renewable energy portfolio.

Analysts believe the steady pace of project awards demonstrates that public capital expenditure remains a key driver of India’s infrastructure growth. Large order books provide visibility for engineering, procurement and construction companies while supporting demand for cement, steel, construction equipment and industrial manufacturing.

The strong tender pipeline is equally important. Infrastructure projects typically move through several stages before construction begins, making fresh tenders an indicator of future business opportunities across multiple sectors. A sustained flow of tenders is expected to keep project execution healthy over the next 12 to 18 months.

Private sector participation is also expected to remain active as infrastructure investment expands across transport, energy, logistics and urban development. Improved project execution, supportive government policies and rising economic activity continue to attract domestic and international investors seeking long-term infrastructure opportunities.

While challenges such as land acquisition, financing costs and supply chain pressures remain, the latest figures indicate that India’s infrastructure development programme continues to maintain strong momentum. With highways, railways and power projects leading the investment cycle, the sector is expected to remain one of the country’s most important engines of economic growth through FY27.