NEW DELHI: India’s Infrastructure Investment Trusts (InvITs) are poised for significant growth, with asset management (AUM) expected to increase 3.5 times, reaching USD 258 billion by 2030, as revealed in a recent Knight Frank India study.
Worldwide, there are over 1,000 listed Real Estate Investment Trusts (REITs) and InvITs with a combined market capitalization of USD 3 trillion. By FY25, India’s InvITs are projected to manage USD 73.3 billion in AUM, nearly 3.5 times that of the country’s REITs. Together, InvITs and REITs represented USD 93.9 billion in FY25, a significant rise from USD 42.1 billion in FY20. Currently, with 17 InvITs and five REITs listed on Indian stock exchanges, their total market capitalization reaches USD 33.2 billion, making India the fourth-largest player in Asia, trailing behind Japan, Singapore, and Hong Kong.
Shishir Baijal, chairman & managing director, stated, “India’s InvIT platform stands on the brink of transformative growth. The leap from USD 73 billion today to USD 250–265 billion by 2030 will not only address financing gaps but also entice global infrastructure investment.”
Infrastructure Investment Fuels Growth
The report indicates that India’s infrastructure investments have surged sixfold over the past decade. Government expenditure on core infrastructure increased from USD 12 billion in FY15 to USD 75 billion in FY25, escalating from 0.6% to 2% of GDP. This growth, coupled with private sector participation through Public-Private Partnerships (PPPs) and the government’s National Monetisation Pipeline (NMP), is creating a robust environment for InvIT expansion.
The newly launched NMP 2.0 aims to monetize assets worth ₹10 trillion by 2030, building on NMP 1.0’s success, which hit 95% of its ₹6 trillion target for FY21–25.
Sectoral Opportunities
InvIT penetration is relatively low across several sectors, indicating substantial growth potential:
Roads: InvITs currently oversee 12,629 km of highways, which is only 8.6% of the total network, with a goal to expand to 200,000 km by 2030.
Renewables: Despite a 98 GW solar capacity in India, InvITs manage just 2% of the operational assets.
Telecom: With 250,000 towers under InvITs, they hold a 33% market share, signifying further opportunities in digital infrastructure.
Logistics & Airports: Currently, there are only 39 million sq ft of warehouses and no airports under InvIT structures, indicating significant untapped potential.
