Sebi Chief Says REITs, InvITs Key To India’s Infra Financing Push

India must aggressively scale Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) to meet massive long-term infrastructure financing needs and reduce dependence on traditional sources of capital, the Chairman of the Securities and Exchange Board of India (Sebi), Tuhin Kanta Pandey, has said. Speaking at the National Conclave on REITs and InvITs 2025, Pandey described REITs and InvITs as a critical bridge between household savings and national infrastructure priorities, calling for regulatory and market reforms to boost penetration and deepen participation. Speaking at the event hosted by the Bharat InvITs Association and Indian REITs Association, Pandey urged a shift from government-led funding to market-driven investment models. “India’s infrastructure journey must now be driven by the dynamism of markets. Instruments like REITs and InvITs connect everyday household savings with long-term national assets,” he said. He noted that capital markets diversify risk, enforce transparency and strengthen governance, which makes them suitable for long-gestation projects. Pandey emphasised that India’s ambition to become a USD 5 trillion economy requires sustained capital expansion. He said that transport, energy, telecom, aviation, warehousing and urban infrastructure will together require more than Rs 700 trillion in investment by 2047, underlining that “the next phase of India’s infrastructure story must be driven by markets and by instruments that democratise access to high-value assets.”India And Its REITs And InvITsIndia currently has five listed REITs and 24 InvITs across sectors, including roads, renewable energy, power transmission, telecom, warehousing and commercial real estate. As of October 2025, the combined assets under management (AUM) of REITs, InvITs and SM REITs stand at roughly Rs 9.25 trillion, a figure Pandey said leaves “significant room to grow in depth, scale and diversification”. He added that these structures “democratise access to high-value assets and deliver real cash returns to unitholders”. However, Pandey said retail participation remains worryingly low, with awareness around 10 per cent and penetration below 1 per cent. “This must change,” he said, noting that measures such as reduced minimum investment thresholds, REIT reclassification as equity, and inclusion in indices are expected to drive liquidity and visibility. He said Sebi is also working with regulators, including IRDAI, PFRDA and EPFO to increase institutional investment, and collaborating with the Ministry of Finance and state governments to accelerate asset monetisation. He welcomed recent state-driven initiatives, including the Maharashtra Government’s plan to establish a state-level InvIT and NHAI’s decision to launch a public InvIT for retail investors. Index inclusion of REITs and InvITs and broader access through mutual funds were highlighted as critical enablers to expand the investor base. The Conclave also included a review of sector data and investor sentiment. Alok Aggarwal, Chairperson of the Indian REITs Association, said the REIT ecosystem in India has rapidly transitioned from concept to scale. He said the platform now covers more than 176 million square feet of Grade-A real estate and includes over 3.3 lakh unitholders, calling REITs “engines of urban development, job creation and capital formation”. N.S. Venkatesh, CEO of the Bharat InvITs Association, said that InvITs have evolved into “one of the most dynamic instruments driving India’s infrastructure financing landscape”. He forecast that the industry’s AUM will expand three-fold from the current Rs 7 lakh crore to Rs 21 lakh crore by 2030. He said enabling policies and convergence of public and private capital are set to accelerate growth and help democratise retail participation.