India’s InvIT market set to reach Rs 21 lakh crore by 2030: Report

India’s Infrastructure Investment Trust (InvIT) market is expected to surge to Rs 21 lakh crore by 2030, driven by the country’s rising infrastructure funding requirements and supportive government policies, according to a report released on Wednesday, IANS reported.

The white paper by Client Associates (CA), an asset management firm, said the growth will be supported by Rs 4.5 trillion in infrastructure investment needs by 2030, along with government initiatives like the National Infrastructure Pipeline (NIP) and increasing institutional allocations to alternative assets.

Returns outperform traditional fixed-income assets

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The report noted that corporate capital optimisation through InvITs and low retail participation offer “meaningful room for growth.” Client Associates said InvITs have delivered average pre-tax returns of 10–12 per cent and post-tax returns of 7–9 per cent, outperforming most fixed-income instruments.

“InvITs exhibit a distinct risk-return profile with volatility of 10.2 per cent versus 15.4 per cent for equities, offering a relatively stable investment profile while delivering total returns of 12.2 per cent — slightly below equities at 12.3 percent—but providing steady income,” the report added.

InvIT ecosystem expands with 27 registered trusts

As of FY25, India’s InvIT ecosystem comprises 27 registered trusts with a combined assets under management (AUM) of Rs 6.3 lakh crore, having mobilised about Rs 1.3 lakh crore (USD 15.8 billion) in the past five years.

The report also pointed to recent SEBI reclassifications, which now treat REITs as equity for mutual funds, while InvITs remain categorised as hybrids.

“This shows that REITs are more aligned with equity in terms of structure and liquidity, while InvITs are predominantly privately placed with more stable cash flows and lesser liquidity, behaving more like debt-hybrids rather than equity,” Client Associates explained. The white paper said that policy reforms, including the National Infrastructure Pipeline, asset monetisation through entities like the NHAI, and 2024 tax reforms reducing long-term capital gains (LTCG), are likely to further boost the InvIT sector.