India is fast emerging as a key destination for infrastructure investment in Asia, driven by growing investor appetite, supportive government policies, and a rapidly expanding economic landscape. Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs) are playing an increasingly pivotal role in bridging financing gaps and channeling long-term capital into the sector.
Globally, REITs and InvITs also referred to as business or master trusts have a market capitalisation of around USD 3 trillion, with over 1,000 listed entities. In India, five REITs and seventeen InvITs are currently listed, combining for a market cap of USD 33.2 billion, positioning the country as the fourth-largest market in Asia for such investment vehicles.
According to a new study by Knight Frank India, the Assets Under Management (AUM) of India’s InvITs have reached approximately USD 73.3 billion in FY 2025. Driven by large-scale infrastructure investment, this figure is expected to grow 3.5 times to USD 258 billion by 2030.
The expansion will be supported by increased participation from domestic pension and insurance funds, institutional investors, foreign capital, and rising awareness among retail investors.
Shishir Baijal, Chairman and Managing Director of Knight Frank India, said, “India’s InvIT platform is at the threshold of transformative growth. From an AUM base of USD 73 billion today, we are set to scale to USD 250–265 billion by 2030. This growth will bridge critical infrastructure financing gaps while opening pathways for domestic and global capital.” He emphasised that broadening participation while maintaining governance and transparency will be key to sustaining investor confidence.
Infrastructure development in India has accelerated significantly in the past decade. Central government spending on core infrastructure surged from USD 12 billion in FY 2015 to USD 75 billion in FY 2025, reflecting strong policy support. Achieving India’s USD 7 trillion economy target will require an estimated USD 2.2 trillion in infrastructure investment, highlighting the need for private sector involvement alongside public funding.
InvITs have emerged as an effective tool for financing operational infrastructure assets, enabling capital recycling and ensuring timely project development. Under initiatives like the National Monetisation Pipeline (NMP) 2.0, the government aims to monetise INR 10 trillion worth of revenue-generating assets by 2030, further strengthening the role of InvITs in mobilising private investment.
Knight Frank’s research shows that roads, energy, telecom, logistics, ports, airports, and renewable energy sectors hold immense potential for InvIT expansion. For instance, InvITs currently manage only 21% of operating NHAI toll assets and about 2% of India’s operational solar capacity. Similarly, only a fraction of logistics assets is under InvIT structures, while airport, port, and wind energy penetration remain limited. As such, significant opportunities exist to diversify asset classes and attract new pools of capital.
Rajeev Vijay, Executive Director, Government and Infrastructure Advisory, Knight Frank India, highlighted the next phase of growth: “The focus will be on deepening domestic institutional participation, expanding retail access, and attracting foreign investment through risk-hedging measures. Broadening asset categories and maintaining regulatory clarity will position India as a leading global infrastructure investment destination.”
With the AUM of InvITs projected to reach USD 258 billion by 2030, these investment vehicles are poised to become the cornerstone of India’s infrastructure financing ecosystem. By leveraging policy support, investor education, and emerging asset classes, India is not only strengthening its position as Asia’s fourth-largest InvIT and REIT market but also setting the stage to become a global infrastructure investment magnet.
