A new report from Client Associates projects that India’s Infrastructure Investment Trust (InvIT) market is set to surge to Rs 21 lakh crore by 2030. This monumental growth is being driven by the nation's $4.5 trillion infrastructure needs, supportive government policies like the National Infrastructure Pipeline (NIP), and the compelling performance of InvITs themselves. Offering average pre-tax returns of 10-12% with lower volatility than equities, InvITs are carving out a unique space as a stable, income-generating asset class. This makes them a critical vehicle for financing India's future and a powerful tool for investors.
India’s InvIT Market to Skyrocket to Rs 21 Lakh Crore by 2030, Report Finds
New Delhi India’s Infrastructure Investment Trust (InvIT) market is poised for explosive growth, projected to more than triple in size to reach a staggering Rs 21 lakh crore by 2030. This forecast comes from a new white paper by asset management firm Client Associates (CA), which identifies a powerful combination of massive infrastructure demands and supportive government policies as the primary catalysts.
The report, released on Wednesday, details how the nation’s ambitious development goals will fuel this expansion. Key drivers include a projected $4.5 trillion requirement for infrastructure investment by 2030, strategic government initiatives like the National Infrastructure Pipeline (NIP), and an increasing appetite from institutional investors for alternative assets.
Furthermore, the white paper points to the growing trend of corporate capital optimization through InvITs and the significant room for growth in retail participation as factors that will propel the market forward.
Attractive Returns with Lower Volatility
Highlighting their investment appeal, the Client Associates report revealed that InvITs have consistently outperformed traditional fixed-income instruments. On average, they have delivered pre-tax returns of 10–12 per cent and post-tax returns of 7-9 per cent.
The report also emphasized the unique risk-return profile of these instruments, making them an attractive option for investors seeking stability without sacrificing significant returns. “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 of 12.3 per cent — but providing steady income,” the report stated.
Current Landscape and Regulatory Tailwinds
As of the fiscal year 2025, India’s InvIT ecosystem comprises 27 registered trusts with a combined Assets Under Management (AUM) of Rs 6.3 lakh crore. The market has successfully mobilised approximately $15.8 billion over the past five years, underscoring its growing importance in financing the nation’s infrastructure.
The report also shed light on a crucial regulatory distinction made by the Securities and Exchange Board of India (SEBI). A recent decision reclassified Real Estate Investment Trusts (REITs) as ‘equity’ for mutual fund investments, while InvITs retained their ‘hybrid’ classification.
Client Associates explained the rationale behind this move, highlighting 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-hybrid rather than equity.”
Government reforms continue to be a cornerstone of the InvIT market’s growth. Initiatives such as the NIP and large-scale asset monetisation programs by entities like the National Highways Authority of India (NHAI) are creating a robust pipeline of assets for InvITs. Additionally, tax reforms introduced in 2024, which reduced the long-term capital gains (LTCG) tax, have further enhanced their attractiveness to investors.
With a powerful combination of compelling returns, government backing, and a critical role in national development, the Indian InvIT market is firmly on a high-growth trajectory, positioning itself as a key vehicle for both infrastructure financing and investor wealth creation in the coming decade.
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