India needs ₹700 trillion in infrastructure investment by 2047Highlighting India’s huge financing needs, the SEBI chairman noted that transport, energy, telecom, aviation and urban infrastructure will require more than ₹700 trillion over the next two decades.
“Without sustainable finance, our aspiration to become a $5 trillion economy will be limited,” he warned, calling for the next phase of India’s infrastructure story to be driven by capital markets and instruments that “democratize access to high-quality assets.”
REITs and InvITs, he said, bring governance discipline, risk diversification and transparency – qualities that are essential for long-term infrastructure projects.REITs and InvITs: Growing fast, but India is still at an early stageDetailing market progress, he said India now:
5 listed REITs, 24 listed InvITs representing roads, renewables, transmission, telecom, storage and commercial real estate.
As of October 2025, the combined assets under management of REITs, InvITs and SM REITs stand at ₹9.25 trillion: significant progress, but still far from India’s long-term needs.
He added that these instruments “deliver real cash returns for shareholders while providing access to institutional-quality assets.”
Low retail participation is a major concern
The SEBI Chairman cited low retail involvement as the sector’s biggest challenge:
Consciousness remains only ~10%
Penetration is less than 1%
“This has to change,” he said, highlighting SEBI’s recent reforms:
Reclassification of REITs as equity
Lower minimum investment thresholds
Launch of SM REITs
Enable participation in investment funds
Push for inclusion of indexes to improve liquidity and visibility
He said these steps “will broaden participation and strengthen the pipeline of monetized assets.”
Policy push to accelerate monetization
The Chairman said that SEBI is actively working with the Ministry of Finance, State Governments and regulators such as IRDAI, PFRDA and EPFO to promote institutional investments.
He also welcomed recent developments:
Maharashtra government’s plan to set up a state-level InvIT
NHAI’s upcoming public InvIT is aimed at retail investors
These, he said, are critical to accelerating India’s asset monetization pipeline.
REIT and InvIT industry leaders expect multi-fold growth
Alok Agarwal, Chairman, Indian REITs Association, said the Indian REIT platform has quickly become one of the most trusted investment options in the country.
“With over 176 million sq ft of Class A assets and a growing base of 3.3 lakh unitholders, REITs are the driving force behind urban transformation, employment and capital formation,” he noted.
NS Venkatesh, CEO of Bharat InvITs Association, said InvITs are poised for three-fold growth, from the current AUM of ₹7 lakh crore to ₹21 lakh crore by 2030.
He said the sector will play a central role in democratizing private savings while enabling the convergence of private and public capital.
A new era for India’s capital market-driven infrastructure
With financing needs soaring and private capital emerging as a central pillar of India’s development story, REITs and InvITs are now being positioned as crucial tools for building the country’s future.
The SEBI Chairman’s message was clear: India cannot achieve its infrastructure goals without deepening and scaling the REIT and InvIT ecosystem
#REITs #InvITs #critical #financing #Indias #trillion #infrastructure #vision #SEBI #Chairman