Will India’s Infra Investment Trust Market Hit Rs 21 Lakh Crore by 2030?
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Synopsis
India's infrastructure investment trust market is on track to hit Rs 21 lakh crore by 2030, driven by massive investment needs and strategic government initiatives. This growth reflects a shift in investment dynamics and offers attractive returns, making it a significant player in India's economic future.
Key Takeaways
- Projected InvIT market value: Rs 21 lakh crore by 2030
- Infrastructure investment needs: $4.5 trillion by 2030
- Stable investment returns: Average pre-tax returns of 10–12 percent
- Government initiatives: National Infrastructure Pipeline and tax reforms
- Growing InvIT ecosystem: 27 registered trusts as of FY25
New Delhi, Nov 5 (NationPress) India’s infrastructure investment trust (InvIT) market is anticipated to soar to Rs 21 lakh crore by 2030, largely driven by the growing need for infrastructure investments, according to a report released on Wednesday.
Asset management firm Client Associates (CA) detailed in its white paper that this growth is spurred by an estimated $4.5 trillion needed for infrastructure by 2030, government initiatives like the National Infrastructure Pipeline (NIP), and heightened institutional interest in alternative assets.
Moreover, the optimization of corporate capital through InvITs and the relatively low retail participation create substantial growth opportunities, the firm indicated.
According to Client Associates, InvITs have recorded average pre-tax returns ranging from 10–12 percent and post-tax returns between 7–9 percent, exceeding the performance of conventional fixed-income assets.
"InvITs showcase a unique risk-return profile with volatility at 10.2 percent compared to 15.4 percent for equities, providing a more stable investment avenue while yielding total returns of 12.2 percent -- slightly trailing equities at 12.3 percent -- while ensuring consistent income," the report highlighted.
As of FY25, India’s InvIT landscape comprises 27 registered trusts with a total AUM of Rs 6.3 lakh crore, having raised around $15.8 billion over the last five years.
The report also noted a recent decision by SEBI that reclassified REITs as equity for mutual funds, while keeping InvITs categorized as hybrids.
This indicates that, "REITs are more aligned with equity in terms of structure and liquidity, while InvITs are mainly privately placed, exhibiting more stable cash flows and lesser liquidity, functioning more like debt-hybrid rather than equity," Client Associates emphasized.
The white paper pointed out that government reforms are propelling growth, including the National Infrastructure Pipeline (NIP), asset monetization through entities such as NHAI, and tax reforms in 2024 that lowered long-term capital gains (LTCG).
Point of View
I believe that India's infrastructure investment trust market holds immense promise, reflecting our nation's commitment to growth and modernization. With strategic government initiatives and evolving market dynamics, the future looks bright for InvITs, making it an essential area for investors to watch closely.
NationPress
26/12/2025
Frequently Asked Questions
What is the projected value of the InvIT market in India by 2030?
The InvIT market in India is projected to reach Rs 21 lakh crore by 2030.
What are the key factors driving the growth of InvITs?
The growth of InvITs is driven by a $4.5 trillion infrastructure investment need, government initiatives like the National Infrastructure Pipeline, and increased institutional allocations to alternative assets.
How do InvITs compare to traditional fixed-income investments?
InvITs have shown average pre-tax returns of 10–12 percent and post-tax returns of 7–9 percent, outperforming traditional fixed-income instruments.
What is the risk-return profile of InvITs?
InvITs exhibit a volatility of 10.2 percent, which is lower than equities at 15.4 percent, providing a stable investment profile with total returns slightly below equities.
How many InvITs are currently registered in India?
As of FY25, there are 27 registered InvITs in India, with a total AUM of Rs 6.3 lakh crore.
