NEW DELHI
India’s infrastructure investment trust (InvIT) market is projected to reach an impressive Rs 21 lakh crore by 2030, driven by the nation’s massive infrastructure investment needs, according to a new white paper by Client Associates (CA).
The report highlights that India will require nearly $4.5 trillion in infrastructure investment by 2030. Key growth drivers include the government’s National Infrastructure Pipeline (NIP), rising institutional interest in alternative assets, and growing opportunities for corporate capital optimisation through InvITs.
Client Associates noted that InvITs are gaining popularity among investors because they provide higher returns and lower volatility compared to traditional instruments. InvITs have recorded average pre-tax returns of 10–12 percent and post-tax returns of 7–9 percent, outperforming most fixed-income options. With a volatility rate of 10.2 percent against equities’ 15.4 percent, they deliver total returns of 12.2 percent — nearly matching equity returns of 12.3 percent — while ensuring a stable income stream.
As of FY25, India has 27 registered InvITs with total assets under management (AUM) of Rs 6.3 lakh crore, having mobilised about $15.8 billion over the past five years.
The report also mentioned SEBI’s recent move to reclassify REITs as equity for mutual funds, while keeping InvITs in the hybrid category. This reflects their structural difference — REITs behave more like equity, while InvITs function as debt-hybrids with steadier cash flows.
Government reforms, including tax benefits and asset monetisation through NHAI, are further supporting this fast-growing sector, reinforcing India’s infrastructure-led growth vision.