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India's Infrastructure Investment Trusts (InvITs) sector is projected for substantial growth, with its assets under management (AUM) expected to surge to INR 21.5 lakh crore (USD 258 billion) by 2030, a more than threefold increase from its current size. This significant expansion is being driven by a surge in India's infrastructure investments and robust government initiatives like the National Monetisation Pipeline (NMP). While the InvIT sector is already gaining traction, it has considerable untapped potential across various infrastructure domains, which is expected to attract significant global capital.
In a clear signal of the growing maturity and potential of India's infrastructure market, the country's InvIT sector is on track for a massive expansion in the coming years. According to a new report by Knight Frank India, the sector's assets under management are forecast to reach an impressive INR 21.5 lakh crore (USD 258 billion) by 2030, representing a remarkable 3.5-fold increase from its current valuation of approximately INR 6.1 lakh crore (USD 73.3 billion) in the fiscal year 2025. Advertisement
This optimistic forecast is a direct result of several key factors. India has seen a sixfold increase in infrastructure investments over the past decade, a trend that is being further supported by proactive government policies. The National Monetisation Pipeline (NMP), in particular, is playing a crucial role. The government's NMP 2.0 initiative aims to monetize infrastructure assets worth INR 10 trillion by 2030, building upon the success of its predecessor and creating a steady pipeline of assets for InvITs.
Despite the current growth, the InvIT sector's market capitalization, combined with Real Estate Investment Trusts (REITs), stands at USD 33.2 billion, which ranks fourth in Asia. This indicates that there is still significant room for expansion. Currently, InvITs manage only a small fraction of the country's vast infrastructure, including just 8.6% of the national highway network and a mere 2% of its solar energy capacity. Sectors such as logistics, airports, and digital infrastructure also have low InvIT penetration, presenting immense future opportunities.
This growth is anticipated to not only bridge crucial financing gaps in infrastructure development but also serve as a magnet for global institutional investors looking for stable, long-term returns.
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