InvITs boom as India chases Rs 21 lakh crore dream
India’s market for infrastructure investment trusts is expected to grow to Rs 21 lakh crore by 2030, according to analysis released on Wednesday. Asset manager Client Associates attributed the expansion to approximately $4.5 trillion required for infrastructure development over the next six years, along with government programs like the National Infrastructure Pipeline and greater institutional commitment to alternative investments.
The sector currently encompasses 27 registered trusts managing Rs 6.3 lakh crore in assets under management as of fiscal 2025, having raised about $15.8 billion across five years. These vehicles generated average pretax gains of 10 to 12 percent and after-tax profits of 7 to 9 percent, surpassing conventional fixed-income products. Investment trusts demonstrated volatility of 10.2 percent compared with 15.4 percent for stocks while delivering total returns of 12.2 percent.
Recent regulatory changes by SEBI placed real estate investment trusts in the equity category for mutual funds while maintaining infrastructure trusts as hybrid instruments. The classification reflects differences in structure and trading characteristics, with infrastructure vehicles typically featuring private placements and consistent cash generation. Government measures supporting growth include asset sales through organizations such as NHAI and 2024 tax adjustments that lowered long-term capital gains obligations.
