India’s Infrastructure Investment Trust (InvIT) market is witnessing unprecedented growth and is rapidly emerging as one of the country’s most attractive asset classes, driven by sustained policy push, investor confidence, and a large financing requirement for infrastructure development.
According to a new report released by Knight Frank India, the total assets under management (AUM) of InvITs is expected to reach an impressive ₹22,45,890 crore (US$ 258 billion) by 2030, marking a significant 3.5x increase compared to ₹6,38,077 crore (US$ 73.3 billion) in FY25.

InvITs outpace REITs, strengthen India’s position in Asia

InvITs have grown much faster than Real Estate Investment Trusts (REITs) over the last five years and are now outpacing REITs in both pace and scale.
In FY25, InvITs and REITs together managed ₹8,17,400 crore (US$ 93.9 billion) in assets—a sharp jump from ₹3,66,481 crore (US$ 42.1 billion) in FY20.
India currently stands as the fourth-largest InvIT and REIT market in Asia, with 17 InvITs and 5 REITs listed on Indian stock exchanges, representing a combined listed value of ₹2,89,006 crore (US$ 33.2 billion).

Government spending and enabling policies fuel growth

Much of this momentum is being driven by proactive Government policy support, which has helped InvITs become a key funding instrument for brownfield and greenfield projects.
The National Monetisation Pipeline (NMP) and the recently announced NMP 2.0, which targets asset monetisation worth ₹10 lakh crore (US$ 114.8 billion) by 2030, are strengthening investor interest and pushing institutional capital into infrastructure assets.

Parallelly, public infrastructure investment has risen sharply, from ₹1,04,460 crore (US$ 12 billion) in FY15 to ₹6,52,875 crore (US$ 75 billion) in FY25—a 6.2x increase and equivalent to 2% of India’s GDP. These initiatives are aimed at crowding in private capital through risk-sharing, viability gap funding, and transparent governance frameworks.

Funding India’s ₹1.91 lakh crore infrastructure gap

The need for expanding InvITs becomes even more pressing considering that India will require ₹1,91,51,000 crore (US$ 2.2 trillion) in infrastructure investment by 2030 to sustain its economic growth ambitions. InvITs, which allow long-term investors to participate in operational infrastructure projects, will be indispensable for financing large-scale assets in:

Although InvITs manage more than 2,50,000 telecom towers, it only represents 33% of total tower assets. The potential in renewables and logistics is even greater, as InvITs currently account for only 2% of national solar capacity and less than 5% of logistics and airport assets. This gap presents a clear opportunity for deepening InvIT penetration across the infrastructure spectrum.

What will drive the next phase of InvIT expansion

Experts point to a few critical drivers that will define the evolution of India’s InvIT market over the next five years:

• Broader retail participation through easier investment routes and digital platforms

• Higher exposure by pension funds and insurance companies, which can deploy long-duration capital

• Diversification into newer asset categories such as data centres, water infrastructure, waste management and urban mobility networks

• Greater institutional participation through blended finance structures and risk-sharing mechanisms

• Robust governance standards and regulatory clarity, which will enhance investor confidence and reduce operational friction

The potential of InvITs to convert underutilised public infrastructure assets into productive financial instruments is also being recognised by global sovereign wealth funds, domestic pension funds, and long-term ESG-focused investors, who now view InvITs as a stable, yield-generating asset class aligned with sustainable development goals.

Conclusion

The rapid rise of Infrastructure Investment Trusts is a testament to India’s maturing capital markets and its shift towards innovative financing models for long-term infrastructure creation. With expanded policy support, continued monetisation of core assets, and increasing participation from retail and institutional investors, InvITs are expected to play a central role in bridging India’s infrastructure funding gap and evolving into a US$ 258 billion market by 2030.

This transition marks a transformative shift where India’s infrastructure story is no longer driven only by government spending, but by a well-structured and globally competitive investment framework—making InvITs one of the hottest and fastest-growing asset classes in the country.

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