A stake in India's highways

Sify.com, a leading Indian news portal reported last week that a U.S based private equity fund was investing in an Indian construction company

This is the first deal that I have read about that pertains to the construction sector. It is heartening to note that U.S based private equity investors are beginning to invest in sectors outside of I.T. services and technology.

India's creaky infrastructure is crying for modernization. There is a lot of government investment in this sector -- most prominently, the construction of the Golden Quadrilateral linking Mumbai, Delhi, Madras and Calcutta. But,like most cases in India, success will come after the private industry gets directly involved - either in direct competition, or in partnership with the government.

Improving the infrastructure will reduce the cost of goods for many Indian companies -- directly affecting their bottom line. This will enable companies to invest more in growth, thereby boosting growth and stock prices.

Namaste.