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TOLL TALES

Beyond Market

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September, 2025

FASTag efficiency and highway growth are paving the way for India's record-breaking toll revenues

TOLL TALES

India's national road toll collection recently touched an all-time high.

According to official data, in August '25, tolls on national highways reached ₹7,053 crore, marking the second-highest monthly collection ever recorded. This amount is about 26% higher than the collection in August '24. This is a noteworthy milestone, considering that there were disruptions in the form of heavy rains in many parts of India. So, what could be the reasons for such a high toll collection?

THE JOURNEY

In the past three years, there have been notable changes in the toll collection business in India. It has been a robust upward trajectory, reflecting a combination of infrastructure expansion, technological advancements in tolling, and rising vehicular movement. According to official data, between fiscal years 2021-22 and 2024-25, toll revenues have scaled unprecedented heights, largely driven by the nationwide adoption of FASTag electronic toll systems and a substantial increase in tolled highways.

Government data shows that India's total toll collection rose steadily from ₹38,069 crore in FY22 to ₹72,931 crore in FY25, almost doubling in three years. User-fee collection on national highways also surged by 12.5% in FY25 alone compared to the previous year, reaching an all-time high. In FY24, toll revenue was ₹64,810 crore, up from ₹54,068 crore in FY23. Though growth in toll collection moderated year-on-year, the absolute revenue collected by the government continues to grow.

The volume of toll usage has also expanded significantly. Toll transactions rose from 3.8 billion in FY23 to ~4.2 billion in FY24, underscoring increased highway traffic flow. Toll collections saw surges of 53% in FY23 and nearly 20% in FY24, fuelled by infrastructure development and higher user-fee rates.

Contribution Of Key States To National Road Toll Collection

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