India’s InvIT market poised to surge 3.5 times to $258 billion by 2030: Report

The total Assets Under Management (AUM) of Infrastructure Investment Trusts (InvITs) in India has reached $73 billion in FY 2025, with projections for significant growth to $257.9 billion by 2030. This growth positions India as one of the fastest-growing destinations for InvITs and Real Estate Investment Trusts (REITs) in Asia.

InvITs vs. REITs

Both InvITs and REITs are investment vehicles that allow individuals to invest in large, income-generating assets without direct ownership. Both are regulated by the Securities and Exchange Board of India (SEBI).

• REITs focus on income-producing real estate assets. By pooling money from multiple investors, they offer access to the real estate market with high liquidity, as their units are traded on stock exchanges.
• InvITs are similar but are dedicated to infrastructure projects such as roads, power transmission, and telecommunications. They serve as a crucial channel for financing large-scale infrastructure by attracting capital from both domestic and foreign investors.

Market and Regulatory Landscape

India currently has 5 listed REITs and 17 listed InvITs, with a combined market capitalization of $33.2 billion. Globally, there are over 1,000 publicly listed trusts with a combined market capitalization of approximately $3 trillion.

The growth in India’s InvIT market is driven by robust government capital expenditure and initiatives like the National Monetisation Pipeline (NMP), which uses InvITs as a key mechanism to monetize revenue-generating assets. The regulatory framework, established by the SEBI (Infrastructure Investment Trusts) Regulations, 2014, ensures transparency and investor protection. These regulations mandate that InvITs must invest at least 80% of their assets in completed and revenue-generating projects, providing stable returns for investors.

(Source: DD News)