New Delhi: India’s infrastructure investment trust (InvIT) market is set to soar to Rs 21 lakh crore by 2030, driven by rising infrastructure funding needs, SBI Research reported November 5, 2025.
Asset management firm Client Associates (CA) projected strong growth for India’s InvIT market, driven by $4.5 trillion infrastructure investment needs by 2030. Government initiatives such as the National Infrastructure Pipeline (NIP) and rising institutional allocations to alternative assets will further accelerate growth.
The firm noted that corporate capital optimisation via InvITs and low retail participation provide significant room for expansion. These factors position InvITs as an attractive instrument for long-term investors seeking steady returns.
Client Associates reported that InvITs delivered average pre-tax returns of 10–12% and post-tax returns of 7–9%. These returns outperform traditional fixed-income instruments while maintaining lower volatility.
“InvITs show a unique risk-return profile with volatility at 10.2% versus 15.4% for equities,” the report said. They provide steady income and total returns of 12.2%, slightly below equities at 12.3%, but with more stability.
As of FY25, India’s InvIT ecosystem includes 27 registered trusts with a combined AUM of Rs 6.3 lakh crore. Over the past five years, these trusts have mobilised approximately $15.8 billion.
The report highlighted SEBI’s recent decision reclassifying REITs as equity for mutual funds while keeping InvITs as hybrids. Consequently, REITs align more with equity in liquidity, whereas InvITs remain privately placed with stable cash flows, behaving more like debt-hybrid instruments.
Government reforms continue to support growth. Measures such as the NIP, asset monetisation through entities like NHAI, and 2024 tax reforms reducing long-term capital gains (LTCG) are key drivers. These steps make InvITs an increasingly attractive option for institutional and high-net-worth investors.