Why is SEBI promoting REITs and InvITs?

SEBI is promoting REITs and InvITs to meet massive infrastructure needs, boost retail participation, and accelerate asset monetisation.

What are the challenges facing India's REIT and InvIT sectors?

The primary challenge is low retail participation, with awareness and penetration rates remaining very low.

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SEBI Chief: Scale Up REITs, InvITs for $5T Economy

Q: What is the infrastructure funding requirement for India by 2047?

India requires over ₹700 trillion for infrastructure development by 2047.

21 Nov

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Summary

India needs over ₹700 trillion for infrastructure by 2047.
Retail participation in REITs/InvITs is below 1%.
SEBI reforms aim to boost investor interest and liquidity.

SEBI Chief: Scale Up REITs, InvITs for $5T Economy

India must significantly accelerate the growth of its Real Estate Investment Trust (REIT) and Infrastructure Investment Trust (InvIT) sectors to finance its extensive long-term infrastructure requirements. SEBI Chairman Tuhin Kanta Pandey highlighted that the nation requires over ₹700 trillion for infrastructure development by 2047, crucial for achieving its $5 trillion economy target.

The current market, with 5 listed REITs and 24 InvITs, boasts a combined Assets Under Management (AUM) of ₹9.25 trillion as of October 2025. However, retail investor participation is a major concern, with awareness at approximately 10% and penetration below 1%. SEBI is implementing reforms such as reclassifying REITs as equity and reducing minimum investment amounts to increase engagement.

These initiatives, alongside enabling mutual fund participation and pushing for index inclusion, are designed to boost liquidity and visibility. Industry leaders anticipate substantial growth, with InvIT AUM projected to reach ₹21 lakh crore by 2030, underscoring the pivotal role of REITs and InvITs in India's capital market-driven infrastructure development.

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