May 27: India’s toll collection growth is expected to moderate to around 5–7 per cent in the current financial year as geopolitical tensions in West Asia and broader global uncertainties impact freight movement and industrial activity, according to a report by Crisil.
The report stated that the economic impact of the ongoing conflict and softer commercial traffic growth could lead to a moderation in toll revenue expansion during the fiscal year.
Analysts noted that slower movement of goods vehicles and cautious industrial activity may temporarily affect highway traffic volumes, resulting in lower-than-expected growth in toll collections.
However, Crisil indicated that the slowdown is likely to be short-term and could recover in the next financial year, supported by inflation-linked toll rate revisions and a gradual improvement in economic activity.
Experts believe infrastructure-linked revenues will continue to remain sensitive to fuel prices, logistics demand, and broader global economic conditions.