On Our Radar: Deals we are paying attention to for their impact on industry.

In India, the road to economic growth appears to be, well, the road itself.

Roadis, a subsidiary of PSP Investment, the Public Sector Pension Investment Board,one of Canada’s largest pension fund managers, is teaming up with India’s National Investment and Infrastructure Fund (NIIF), a fund manager anchored by the Indian government, to invest up to $2 billion in equity for road projects on the subcontinent.

The funding aims to drive an initiative for creating a roads platform across India with investments, acquisitions and leases through the toll-operate-transfer model that the country has greenlighted to monetize national highways.

In recent years, India has seen an increase in private investment in its highways, including from private equity investors Macquarie, Brookfield, ChrysCapital, I Squared Capital, Cube Highways and the Kuwait Investment Authority. NIIF CEO Sujoy Bose said he expects the roads to remain a good bet for both investors and India.

“The road network is a key enabler for the Indian economy to grow and sustain its position as the fastest growing major economy in the world,” added Bose, “and this provides significant upside potential for investments.”

Roadis is a wholly owned subsidiary of PSP Investments, which has $158.9 billion of assets under management, including in private equity and debt, real estate, infrastructure, public markets and natural resources. Through Roadis, it owns and manages 1,175 miles (1,892 kilometers) of highways worldwide, including 441 miles (710 kilometers) in India.

Guthrie Stewart, PSP’s global head of private investments, told VCCirclein December that the firm was looking to up investments in Indian infrastructure, particularly in transportation.

“This agreement, which aligns with our growth strategy,” said Roadis CEO Jose Antonio Labarra, “strengthens our long-term commitment to India.”

Ambreen Ali is a freelance writer and editor based in the New York City area who specializes in business and technology. She has 15 years of reporting experience, including covering Capitol Hill and reporting from South Asia.