New Delhi, Aug 19 The total Assets Under Management (AUM) of Infrastructure Investment Trusts (InvITs) in India have reached $73 billion in FY 2025, driven by large-scale infrastructure investments. This figure is projected to grow 3.5 times to $257.9 billion by 2030, according to a report released on Tuesday.
"This growth will be propelled by higher allocations from institutional investors, increased participation of domestic pension and insurance funds, expanded foreign investment, and rising awareness among retail investors," Knight and Frank said in its report.
India has emerged as one of the fastest-growing destinations for Infrastructure Investment Trusts and Real Estate Investment Trusts (REITs) in Asia.
"India’s InvIT platform is at the threshold of a transformative growth phase. From an AUM base of $73 billion today, we are set to scale to $250–265 billion by 2030, marking a 3.5 times expansion in less than five years," said Shishir Baijal, Chairman and Managing Director, Knight Frank India.
This will not only bridge critical infrastructure financing gaps but also open new pathways for domestic and global capital to participate in India’s growth story, Baijal added.
Investments in India’s infrastructure have expanded rapidly in recent years, driven by the need to modernise assets and boost efficiency. Central and state governments have committed significant capital expenditure, with the Centre leading.
Central government spending on core infrastructure surged from $12 bn in FY 2015 to $75 bn in FY 2025, a 6.2-fold rise, growing from 0.6 per cent of the GDP to 2.0 per cent over the same period, reflecting a strong policy focus on infrastructure-led growth, the report stated.
Infrastructure development will be crucial to achieving India’s $7 trillion economy target, which Knight Frank estimates will require $2.2 trillion in investment.
Rajeev Vijay, Executive Director - Government and Infrastructure Advisory, Knight Frank India, further said, "The next chapter for India’s InvIT market will be about depth and diversity. Institutional investors, especially sovereign and global pension funds, have already anchored the market."
The task now is to unlock larger pools of domestic long-term capital, particularly from insurance and pension funds, where current exposure is only 3–5 per cent, he added.
According to the report, globally, there are over 1,000 publicly listed REITs and InvITs, also termed as master business trusts, boasting a combined market capitalisation of approximately $3 trillion.
In India, there are currently five REITs and 17 InvITs listed on the stock exchange, with a combined market capitalisation of $33.2 billion.
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