REITs & InvITs Explained: How to Earn From Indian Highways
AI Summary
A recent change in tax treatment in India's Union Budget 2025 has made it easier for foreign pension funds to invest in Indian REITs and InvITs, which allow ownership of real estate and infrastructure assets. As a result, the Nifty REITs and InvITs index has seen a significant return of 25.48% in FY26. This development is expected to attract more foreign investment and provide opportunities for both foreign and domestic investors in the Indian market.
REITs, InvITs, foreign investment, pension funds, passive income, Indian infrastructure — a pension fund in Canada could soon own a piece of the highway you drive on every day, and here's exactly why.
Global pension funds manage trillions of dollars searching for stable, real-asset-backed income. Until recently, tax uncertainty kept most of that money out of India's REITs (Real Estate Investment Trusts) and InvITs (Infrastructure Investment Trusts). REITs let you own a share of Grade-A office buildings and malls, earning rental income. InvITs do the same for highways, power lines, and pipelines, paying out toll and transmission income.
Union Budget 2025 fixed the tax treatment for foreign investors, unlocking access for pension giants like Canada's CPPIB and Singapore's GIC. The result: the Nifty REITs and InvITs index returned 25.48% in FY26 — more than double the Nifty 50's 11.88%.
Here's the full breakdown of how REITs and InvITs work, how to invest through your demat account, and why this matters for both foreign and everyday Indian investors in 2026.
Yashank Rathi is a B.Com (Hons) student at Hansraj College, Delhi University, with a strong passion for finance, markets, business trends, and the startup ecosystem. With growing hands on experience in research, content creation, and SEO driven digital marketing, he brings a fresh and analytical perspective to business journalism. He is the Co-Founder of mangopeoplenews.com, where he works to make complex financial and business topics simple, engaging, and relevant to everyday readers.
More videos
