India’s InvIT Market to Grow 3.5 Times, Reach $258 Billion by 2030

India’s Infrastructure Investment Trusts (InvITs) are on track for rapid expansion, with total assets under management (AUM) projected to surge 3.5 times from $73 billion in FY2025 to $258 billion by 2030, according to a recent report by Knight Frank India. This phenomenal growth underscores India’s emerging status as a leading InvIT and REIT market in Asia, propelled by robust infrastructure spending and growing investor participation.

What Are InvITs and Why They Matter

InvITs are investment vehicles designed to attract long-term capital for infrastructure projects such as highways, power transmission, and renewable energy. They allow retail and institutional investors to invest in infrastructure assets and earn regular returns.

Their expansion is critical to bridging India’s infrastructure financing gap, while providing new avenues for domestic and foreign capital flows.

Growth Drivers of India’s InvIT Market

According to Knight Frank, several key factors are driving the exponential growth in India’s InvIT AUM,

• Increased institutional participation, including sovereign wealth funds and global pension funds.
• Rising domestic contributions from insurance and pension funds, which currently have only 3–5% exposure but are poised to grow.
• Higher capital allocations from both public and private sectors, especially in transport, logistics, and energy infrastructure.
• Increased awareness among retail investors, making InvITs more mainstream as an asset class.
• Favourable policy environment, with steady regulatory reforms promoting transparency and returns.

Government Spending: A Strong Infrastructure Backbone

The Indian government has significantly raised infrastructure spending to support economic growth,

• Central government capex rose from $12 billion in FY2015 to $75 billion in FY2025, a 6.2x increase.
• Infrastructure spending as a share of GDP grew from 0.6% to 2.0%, reflecting strategic priority on infrastructure-led growth.
• This strong fiscal push is creating a solid foundation for InvITs to thrive, especially as financing large-scale public infrastructure projects becomes more dependent on private and institutional funding.

InvITs and India’s $7 Trillion Economy Goal

Infrastructure development is a cornerstone of India’s ambition to become a $7 trillion economy by 2030. Knight Frank estimates that $2.2 trillion in infrastructure investment will be required to meet this target. InvITs are seen as critical instruments in attracting both long-term domestic capital and global strategic investment, making them indispensable to India’s growth story.