India’s Infrastructure Investment Trusts (InvITs) are entering a rapid growth trajectory. According to a recent Knight Frank India study, the assets under management (AUM) for InvITs are forecasted to expand 3.5 times, surging from USD 73.3 billion in FY 2025 to approximately USD 258 billion by 2030.
InvITs Leading Over REITs in India
- As of FY 2025, InvITs hold nearly 3.5 times the AUM compared to REITs, which are at USD 20.6 billion. Together, both have more than doubled from USD 42.1 billion in FY 2020 to USD 93.9 billion
- India now stands as the fourth-largest market in Asia for combined REITs and InvITs, with five REITs and seventeen InvITs listed and a combined market capitalization of USD 33.2 billion.
Infrastructure Push Fueling Growth
- Government infrastructure spending has skyrocketed—from USD 12 billion in FY 2015 to USD 75 billion in FY 2025, increasing its GDP share from 0.6% to 2.0%
- Realizing its goal of becoming a USD 7 trillion economy by 2030 will require USD 2.2 trillion in infrastructure funding, with InvITs expected to be critical in channeling capital from pension funds, insurers, foreign investors, and retail markets
Unlocking Untapped Infrastructure Sectors
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InvIT penetration remains limited in many areas: they represent just 21% of NHAI toll assets, 2% of solar capacity, and a small portion in logistics.
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The National Monetisation Pipeline (NMP) has also been pivotal. Phase I (2021–25) reached 95% of a ₹6 trillion target, while NMP 2.0 sets a new goal of ₹10 trillion by 2030, leveraging InvITs to fund infrastructure monetization.
Strategic Roadmap Ahead
To sustain and broaden growth, the report recommends:
- Encouraging retail investor participation through education and easier access
- Expanding allocation limits for pension and insurance funds, which currently maintain low exposure (~3–5%)
- Offering currency risk-hedging tools to attract global capital
- Diversifying InvIT asset classes to include sectors like data centres, urban transport, and water infrastructure
