Crisil SME Tracker: Rural road execution likely speed-breaker for SMEs

India’s roads sector is poised for moderate growth this fiscal, with a 6-8 per cent increase in capex, driven by the government’s focus on developing high-quality transportation infrastructure. 

 

Small and medium enterprises (SMEs) are expected to play a crucial role in this growth given they account for 50-55 per cent of the industry by revenue. 

 

The state and rural roads segments — constituting approximately 20 per cent of the road network and handling approximately 40 per cent of traffic by the facilitating movement of raw materials and products — offer SME players a substantial demand opportunity.   

 

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