Make money from traffic jams in India

The Indian government has finally woken up the country's congestion problem. It's planning to plough up to $500bn into infrastructure projects - and we've uncovered two construction firms destined to soak up the cash.

India may have enjoyed 9.2% economic growth last year, but the country's progress is resting on the shakiest of foundations. After 60 years of neglect, India's road system is bursting at the seams. Eighty per cent of the country's traffic is crammed onto just 3% of the available roadway, with commuters crawling to work at an average speed of 20 miles an hour. Up to 40% of farm produce is lost because it is left to spoil in fields or rots in lorries while waiting to be delivered. Congestion is already costing the country as much as $6bn a year.

Now, though, it seems the Indian government is finally waking up to the crisis. Prime Minister Manmohan Singh has promised a "Marshall Plan-scale effort" to rebuild the country's infrastructure, says Steve Hamm in BusinessWeek. With plans to plough $330bn-$500bn into new roads, subways, airports and power plants over the next five years, India's construction groups look set to reap huge rewards.

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Eoin came to MoneyWeek in 2006 having graduated with a MLitt in economics from Trinity College, Dublin. He taught economic history for two years at Trinity, while researching a thesis on how herd behaviour destroys financial markets.