India Bitumen Market Assessment, By Type [Paving Grade Bitumen, Oxidized Grade Bitumen, Polymer Modified Bitumen, Others], By Application Type [Road Construction, Waterproofing, Adhesives, Others], By Region, Opportunities and Forecast, FY2019-FY2033F

India bitumen market is projected to witness a CAGR of 3.70% during the forecast period FY2026-FY2033, growing from USD 4.32 billion in FY2025 to USD 5.78 billion in FY2033, owing to the rapid infrastructure development, increased road construction activities, and the growing demand for bitumen in various applications. India's bitumen market is anticipated to have a remarkable rise during the forecast period, which is attributed largely to the government's ambitious initiatives for road network expansion and urban development.

Due to rapid urbanization and industrialization, India has witnessed a significant increase in demand for robust infrastructure. The government's flagship programs, such as Bharatmala Pariyojana and Pradhan Mantri Gram Sadak Yojana (PMGSY), are actively promoting the construction of highways, expressways, and rural roads, which are major consumers of bitumen. The increasing vehicle ownership and the expansion of smart cities further necessitate improved road networks, for which bitumen is a primary and cost-effective paving material. Additionally, the constant need for maintenance and repair of existing roads due to harsh weather conditions consistently supports the demand for bitumen. The emphasis on reducing import dependency by bolstering domestic bitumen production capacity, alongside the integration of bio-bitumen, is also propelling market growth.

For instance, in December 2024, India inaugurated its first green road on the Nagpur-Mansar Bypass Project (NH44), constructed with lignin-based bio-bitumen developed by Praj Industries. Roads built with lignin bio-bitumen, blended at up to 15%, can achieve up to 70% reduced greenhouse gas (GHG) emissions compared to conventional fossil-based bitumen, marking a significant step towards sustainable alternatives.

Infrastructure Development Drives the Growth of the India Bitumen Market

The India bitumen market is being significantly driven by extensive infrastructure development across the country. The government's strong focus on building a robust transportation network, including national highways, expressways, and rural roads, is fueling the demand for bitumen. Projects under the Bharatmala Pariyojana aim to construct tens of thousands of kilometers of highways, enhancing connectivity and logistics efficiency. This widespread construction activity directly translates into a higher consumption of bitumen, especially paving-grade bitumen, which is crucial for durable road surfaces. Furthermore, increasing urbanization necessitates the development of new urban road networks and the maintenance of existing ones. The expansion of the automotive sector and the growth of logistics and e-commerce industries also require high-quality roads for the efficient movement of goods and passengers. The ongoing efforts to develop smart cities further contribute to the demand for bitumen in various urban infrastructure projects.

For instance, as of March 2025, Bharatmala Pariyojana, approved in 2017, has seen major progress with 26,425 km of projects awarded and 19,826 km constructed as of February 2025. A significant focus is on high-speed greenfield corridors, where 6,669 km have been awarded and 4,610 km completed by February 2025. The program enhances logistics efficiency, reduces travel time, and strengthens connectivity to economic hubs, tribal areas, and aspirational districts. Execution is supported by modern technologies such as AI-MC, LiDAR, and drone-based monitoring, ensuring quality and safety standards.

Increasing Road Construction Activities Stimulating the India Bitumen Market

The growth of the India bitumen market is primarily driven by the rapid expansion of road construction activities across the country. Bitumen is an indispensable component in road construction, serving as a binding agent in asphalt mixtures that create durable and flexible road surfaces capable of withstanding heavy traffic and diverse weather conditions. The Indian government has significantly increased its capital expenditure on road infrastructure, aiming to expand the national highway network and enhance rural connectivity. Initiatives such as the Pradhan Mantri Gram Sadak Yojana (PMGSY) are extending all-weather road connectivity to previously unconnected villages, thereby increasing bitumen consumption in rural areas. The focus on strategic border road development and the construction of economic corridors further enhances demand. This continuous emphasis on improving the road network across India is a pivotal driver for the bitumen market.

For instance, in July 2025, Minister of State Harsh Malhotra highlighted that under the Modi government, the Ministry of Road Transport & Highways has achieved remarkable progress in infrastructure development, constructing over 60,000 km of national highways in the last decade. The pace of construction has accelerated from around 12 km per day in 2014 to more than 30 km per day in recent years, supported by process reforms, digital monitoring, and stronger public-private partnerships. Landmark projects such as the Delhi-Mumbai Expressway, Delhi-Meerut Expressway, Amritsar-Jamnagar, Dwarka, and Bengaluru-Mysuru corridors were emphasized as transformative, significantly reducing travel time, boosting connectivity, and contributing to the vision of Viksit Bharat.

Road Construction Segment is Anticipated to Propel the Growth of the Market

The road construction segment is poised to emerge as the key growth driver for the India bitumen market, revolutionizing the way bitumen is utilized in the country's infrastructure development. The rapid expansion of India's road network, propelled by ambitious government schemes like the Bharatmala Pariyojana and Pradhan Mantri Gram Sadak Yojana (PMGSY), directly drives the demand for bitumen. Bitumen's excellent binding, waterproofing, and durability properties make it the preferred material for constructing high-quality roads. The increasing emphasis on building new national highways, expressways, and rural roads, along with the maintenance and rehabilitation of existing ones, ensures a continuous and substantial demand for various grades of bitumen, particularly paving grade. Furthermore, the push for sustainable road construction, including the adoption of polymer-modified bitumen (PMB) for enhanced durability and performance, further solidifies the road construction segment's dominance. This sustained investment and focus on road infrastructure position the segment as the primary force shaping the future of India's bitumen market.

India's infrastructure investment has surged, with budget allocations reaching around USD 120.5 billion in FY 2023-24, driven by strong public and private sector participation. The PM Gati Shakti plan, launched in 2021, now brings together 44 Central Ministries and 36 States/UTs, integrating 1,614 data layers by October 2024 and assessing 208 large-scale projects worth around USD 185.4 billion. The national highways network has expanded to 1,46,145 km by 2024, with four-lane (or more) stretches increasing 2.6 times since 2014. Highway construction speed has nearly tripled, rising from 12.1 km/day in FY2014-15 to 33.8 km/day in FY2023-24, while rural connectivity has advanced under the Jal Jeevan Mission, which has provided tap water to 79.74% of rural households as of February 1, 2025.

Future Market Scenario (FY2026 - FY2033F)

The continued and amplified investment by the Indian government in national highways, expressways, and rural road networks will remain the primary growth driver for the bitumen market.

The increasing adoption of advanced bitumen types like Polymer Modified Bitumen (PMB) for enhanced road durability and performance will contribute significantly to market growth.

The rising demand for bitumen in other applications, like waterproofing in the booming construction sector, will also support market expansion.

Efforts to boost domestic bitumen production and reduce import dependency, alongside the integration of bio-bitumen, are expected to provide market stability and growth opportunities.

Key Players Landscape and Outlook

India bitumen market is characterized by a strong presence of major public sector oil companies and a growing number of private players. Public sector undertakings (PSUs) dominate the market due to their extensive refining capacities and distribution networks, catering to the large-scale demand from government-led infrastructure projects. Private players, while smaller in market share, are increasingly focusing on specialized bitumen products such as Polymer Modified Bitumen (PMB) to cater to niche applications and higher performance requirements. Looking ahead, the market is poised for continued growth driven by sustained government investment in infrastructure, particularly road construction.

There will be an increasing emphasis on quality and durability, leading to higher demand for modified bitumen products. Furthermore, the market may witness more integration of sustainable practices, including the use of recycled materials and bio-bitumen. Strategic collaborations between refiners and construction companies, along with technological advancements in bitumen production and application, will shape the competitive landscape. In this evolving market, companies that can efficiently scale production, innovate with advanced bitumen solutions, and effectively navigate the complex regulatory and logistical environment are likely to succeed.

For instance, in December 2024, Engineers India Limited developed a facility for Mangalore Refinery and Petrochemicals Limited (MRPL), which doubled MRPL's bitumen production capacity to 150,000 metric tons annually, enhancing domestic supply. The unit will produce VG30 and VG40 Bitumen grades.