Rs. 22,45,890 crore US$ 258 billion market by 2028: Infrastructure Investment Trust (InvIT) are becoming India's hottest asset class

India’s Infrastructure Investment Trust (InvIT) market is poised for a major expansion, with Knight Frank India projecting it to reach Rs. 22,45,890 crore (US$ 258 billion) by 2030, up 3.5 times from Rs. 6,38,077 crore (US$ 73.3 billion) in FY25. InvITs are outpacing Real Estate Investment Trusts (REITs), which hold Rs. 1,79,323 crore (US$ 20.6 billion)  in assets, taking their combined Assets Under Management (AUM) to Rs. 8,17,400 crore (US$ 93.9 billion) in FY25, compared to just Rs. 3,66,481 crore (US$ 42.1 billion) in FY20. India is now the fourth-largest REIT and InvIT market in Asia, with five REITs and 17 InvITs listed on exchanges, together valued at Rs. 2,89,006 crore (US$ 33.2 billion). Robust government policies underpin this growth, the National Monetisation Pipeline (NMP), and rising institutional interest in brownfield and greenfield projects. The government’s infrastructure spending has surged from Rs. 1,04,460 crore (US$ 12 billion) in FY15 to Rs. 6,52,875 crore (US$ 75 billion) in FY25, a 6.2x increase, accounting for 2% of Gross Domestic Product (GDP).
The expansion of InvITs is expected to be critical in financing India’s Rs. 1,91,51,000 crore (US$ 2.2 trillion) infrastructure requirement by 2030, particularly in roads, renewable energy, logistics, telecom, and urban transport. Currently, InvITs manage only 21% of National Highways Authority of India (NHAI) toll assets and a mere 2% of solar capacity, despite targets of 230 GW solar and 12 lakh telecom towers by 2030. Logistics and airport assets remain largely untapped, while telecom InvITs manage 2,50,000 towers, representing just a 33% share. Policy support through National Monetisation Pipeline (NMP) 2.0, targeting Rs. 10,00,000 crore (US$ 114.8 billion) in asset monetisation by 2030, and investor confidence from risk-sharing, viability gap funding, and governance standards are expected to drive growth. Experts believe broadening retail participation, increasing pension and insurance fund exposure, and diversifying InvITs into new asset classes like data centres and water infrastructure will be key to scaling India’s InvIT market into a global investment magnet.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.