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Two big Canadian pension funds invested a total of C$595 million ($438.3 million) in India's National Highways Infra Trust (NHIT) this week, dialling up their bets on the poll-bound South Asian country's booming infrastructure sector.

In the trust backed by the Indian government for developing national highways, the Canada Pension Plan Investment Board and the Ontario Teachers' Pension Plan Board invested C$297 million and C$298 million, respectively, the funds said in separate statements on Tuesday and Wednesday.

The investments come as India, where general elections commence next month, has been seeing continued momentum in pre-poll government spending, benefitting construction companies across sectors such as cement, wiring and realty.

The share of road-related projects compared to overall tenders grew to 42% in the quarter ended December 2023 from 40% a year earlier, grabbing the largest slice of orders, data from India Ratings & Research showed.

Proceeds from the capital raise will be used to acquire seven road concessions across central, eastern and southern India, Ontario Teachers' said, expanding NHIT's portfolio to operations at 15 toll roads.

($1 = 1.3576 Canadian dollars)