Unlocking Potential: CEO Venkatesh Predicts 85% Growth for InvITs in India Over the Next 5 Years

In recent years, the Infrastructure Investment Trusts (InvITs) industry in India has seen impressive growth. Currently, there are 27 InvITs, but experts predict this number could soar to 50 in the next five years. NS Venkatesh, the CEO of the Bharat InvITs Association, highlights that only two InvITs existed back in 2019.

InvITs are designed to meet India’s infrastructure financing needs. They attract long-term investments while providing stable returns. Since their inception, these trusts have distributed around 68,000 crore rupees to investors. In the fiscal year 2024-25, they paid out 24,267 crore rupees to unit holders, showcasing their reliability.

Venkatesh notes the importance of increasing domestic investments. Currently, the industry relies heavily on foreign funds. The association is actively engaging with local institutions, like the Life Insurance Corporation of India, to encourage them to invest in InvITs. He believes that tapping into more domestic capital will accelerate growth.

Looking ahead, industries like data centers and educational institutions may also explore investing in InvITs. Venkatesh mentioned that public sector companies, such as NTPC, are considering monetizing their operational assets. This would allow them to reinvest in new projects.

India’s National Infrastructure Pipeline and National Monetisation Pipeline are ambitious goals that further position InvITs as key players in the sector. By 2030, InvITs could reach an Assets Under Management (AUM) of 21 lakh crore rupees. This growth is further supported by favorable tax regulations. InvITs must distribute at least 90% of their net cash flows to investors every six months, making them an attractive investment option.

Venkatesh praised the support from the Indian government and the Securities and Exchange Board of India (SEBI). Both entities recognize the potential of this emerging industry and are helping to nurture its growth.

A growing number of investors from various sectors are expressing confidence in InvITs. With strong regulatory oversight, these trusts are becoming vital in supporting India’s infrastructure ambitions.

Lastly, Venkatesh mentioned ongoing discussions about the Goods and Services Tax (GST) framework to help members navigate new benefits. The association values the government’s efforts in this area and is working with experts to make the most of these changes.

In summary, InvITs are set to play a crucial role in India’s economic landscape, offering an innovative way to fund infrastructure while ensuring investor confidence continues to rise.

For more detailed insights on infrastructure financing, check out this report by the Indian Infrastructure Research Institute.

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N S Venkatesh, InvITs, real estate