The assets-size of India’s Infrastructure Investment Trust (InvITs) could triple to around Rs 21 lakh crore by 2030, driven by the heavy government spending and rising institutional investor allocations to alternatives, according to experts.
Corporate capital optimization through InvITs and low retail penetration offers large room for growth, say market observers. Client Associates (CA), a Multi Family Office (MFO) which manage over $7 billion in assets, sees government initiatives like the National Infrastructure Pipeline fuelling the growth.
Amid this rising interest, large number of InvITs are likely to do public issuances, said Jignesh Shah, CEO of Anantam Highways Trust, an InvIT recently listed on the NSE. Some of those InvITs, which earlier chose private placements, are likely to go public, he added.]
As of FY25, India’s InvIT ecosystem comprises 27 registered trusts (24 listed — 6 public, 18 private) and 3 unlisted, with combined assets under management of Rs 6.3 lakh crore. Over the past five years, InvITs mobilised about $15.8 bn, while their assets nearly doubled.
“As infrastructure landscape expands into digital networks, mobility and clean energy, opportunities for next-generation InvITs are set to grow,” said Nitin Aggarwal, director of investment research and advisory at Client Associates.
Another expert said corporate owners of port and airport assets are likely to come up with InvIT structures. “Large corporates including Adani Group, JSW Group and GMR are actively evaluating these,” he said.
Higher valuations and increased popularity among investors, with predictable income, low correlation with equity markets and inflation resilience are the reasons, he said. InvITs will offer investors diversified assets in power, infrastructure, roads, renewables, ports etc.
Besides these, ‘municipal bodies, too, are exploring InvIT-like models for urban assets such as water and waste management’, said NS Venkatesh, CEO of the Bharat InvITs Association (BIA). “Conversion of privately listed InvITs to public ones will deepen market participation, improve transparency, and attract wider investor interest,” he added.
While InvITs offer opportunities for investors, selectivity remains key—liquidity, asset quality, and underlying project fundamentals must be carefully assessed, a white paper on the sector stated.
Global institutional investors, including KKR, Brookfield, CPP Investments, and Ontario Teachers’ Pension Plan, dominate ownership, reflecting international confidence in India’s infrastructure platform. The road sector anchors over 55.0% of InvITs, followed by energy infrastructure (18.5%) and warehousing & logistics (11.1%).
Public authorities, including NHAI and Power Grid Corporation have launched InvITs to recycle capital—demonstrating government confidence in the model. With long-term capital gain (LTCG) holding period reduced from 36 to 12 months and tax rate if 12.5% have significantly improving investor returns.
The success of InvITs ultimately depends on continued regulatory support, improvement in liquidity through increased retail participation and the development of a robust secondary market that enhances price discovery and investor confidence, the white paper observes.
InvITs exhibit a distinct risk-return profile with volatility of 10.2% versus 15.4% for equities, while delivering total returns of 12.2%—slightly below equities of 12.3%—but providing steady income.
Retail participation remains modest, accounting for roughly 7% of total ownership. Nearly half of ownership (47.9%) is concentrated with promoters, while institutional investors (22.3%) and foreign investors (12.3%) together account for over a third of holdings.
InvITs are collective investment scheme which enable direct investment from institutional and individuals. They are similar to fixed income, though with higher yields. InvITs also reduce overall portfolio risk through low correlation with equities.