Good afternoon :)

List of Best Infrastructure ETFs in India 2026

India’s infrastructure expansion continues to accelerate, supported by a strong public capex cycle. The Union Budget 2025–26 earmarked ₹11.21 lakh cr for capital expenditure, reinforcing long-term programmes such as the National Infrastructure Pipeline, Gati Shakti, and major transport and urban development projects. These trends shape the sector mix, order flows, and performance patterns seen in infrastructure-focused indices and ETFs.

Top Infrastructure ETFs in 2026

Infrastructure ETF Stock Screener

Infrastructure ETF Stock Screener: Analyse & Filter Indian Stocks on Tickertape

Showing 1 - 3 of 3 results

last updated at 6:30 AM IST 
NameStocks (3)Sub-SectorSub-SectorMarket CapMarket CapClose PriceClose PricePE RatioPE Ratio1D Return1D Return1M Return1M Return6M Return6M Return1Y Return1Y ReturnPB RatioPB RatioReturn on EquityReturn on EquityROCEROCEDividend YieldDiv YieldDebt to EquityDebt to EquityVolatility vs NiftyVolatility vs Nifty
1.Nippon India ETF Nifty Infrastructure BeESINFRABEESEquityEquity32.4632.46984.51984.51--1.521.52-2.41-2.415.405.4014.9214.92------0.000.00--1.251.25
2.ICICI Prudential Nifty Infrastructure ETFINFRAIETFEquityEquity11.5511.5598.1898.18--1.501.50-2.46-2.465.515.5115.5615.56----------1.181.18
3.Motilal Oswal BSE India Infrastructure ETFMOINFRAEquityEquity5.315.3160.8160.81--1.301.30-1.89-1.893.593.591.181.18----------1.251.25

Disclaimer: Please note that the above table is for informational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing. The data is derived from Tickertape Stock Screener and is subject to real-time updates.

Selection criteria: Based on publicly available information | Sorted by market capitalisation from highest to lowest.

Overview of Top Infrastructure ETFs in India

ICICI Pru Nifty Infrastructure ETF

ICICI Prudential Nifty Infrastructure ETF tracks the Nifty Infrastructure Index and gives exposure to companies across power, construction, energy, telecom and industrial sectors. The ETF mirrors India’s ongoing infrastructure expansion that grows with government spending, rising capex cycles and large projects in transportation, utilities and core industries. These factors shape long-term economic development and reflect the direction of the country’s infrastructure build-out.

Motilal Oswal BSE India Infra ETF

Motilal Oswal BSE India Infra ETF replicates the BSE India Infrastructure Index and provides diversified exposure to firms in engineering, construction, capital goods, utilities and transport. The ETF captures sector-wide trends that move with public and private capex, policy initiatives and project execution cycles. It also reflects India’s broader infrastructure growth roadmap that continues to expand as the economy develops.

What are Infrastructure ETFs?

Infrastructure ETFs are exchange-traded funds that invest in a basket of companies involved in sectors like construction, power, transport, telecom, and utilities. These ETFs replicate an infrastructure-focused index, allowing investors to track the overall performance of India’s infrastructure ecosystem through a single market-listed product.

How to Invest in Infrastructure ETFs?

Here's how you can invest in Infrastructure ETFs using Tickertape -

  1. Create an account on the Tickertape or log in if you already have one.
  2. Open Tickertape Stock Screener
  3. Filter Infrastructure ETFs screener based on various parameters such as market cap, close price, past returns and more. You can review this data to evaluate each ETF’s performance trends and determine whether they align with your investment thesis.
  4. Once you’ve decided on an ETF, you can place a buy order through your brokerage account linked to Tickertape.

You can also stay updated on alerts and announcements for your favourite stocks with Tickertape Alerts. Further, you can analyse your overall portfolio and potential red flags in it by connecting it to Tickertape. Check out detailed analysis of your portfolio now!

Advantages of Investing in Infrastructure ETFs in India

Aligned with Record Government Capex

The Union Budget 2025–26 has earmarked ₹11.21 lakh cr as capital expenditure (3.1% of GDP), signalling a continued infrastructure-led growth push. Infrastructure ETFs linked to core sectors reflect this sustained public capex thrust.

Link to Transport & Logistics Spend

In 2025–26, the government allocated about ₹2.87 lakh cr to roads and ₹2.65 lakh cr to Railways, supporting highways, expressways, freight corridors and stations. Indices behind infra ETFs typically include companies executing or supplying into these projects.

Long-Term Project Pipeline

The National Infrastructure Pipeline originally targeted ₹111 lakh cr in infrastructure investment for FY20–25 and continues to anchor thousands of projects across 30+ sub-sectors. Infra ETFs give exposure to firms participating in this multi-year pipeline.

Urbanisation and City-Level Investments

Approximately 36.9% of India’s population was urban in 2024, with projections indicating 42% urban by 2030. A World Bank study notes that over half of India’s urban infrastructure for 2050 remains to be built, indicating sustained demand for transport, housing, and utilities, which such infrastructure-heavy indices aim to capture.

Growing Urban Infra Funding Pool

Recent estimates suggest India’s urban infrastructure sector could attract about ₹10 lakh cr in investment through FY 2028–29, with proposals for additional budgetary support through an Urban Infrastructure Fund. Infra ETFs provide a way to follow listed beneficiaries of this theme.

Install the Tickertape app and enjoy a more hands-on investing experience
  • portfolio-iconReceive real-time market alerts for timely decisions
  • portfolio-iconMonitor your portfolio from the palm of your hands
  • portfolio-iconWatchlist stocks and mutual funds to stay updated

Risks of Investing in Infrastructure ETFs in India

Execution and Delay Risk Despite

Even with higher capex and NIP backing, many projects face delays due to clearances, land acquisition and financing constraints. Earnings for EPC and construction companies in infra indices can be lumpy when project timelines slip.

Dependence on Government Budgets

A large share of infrastructure order books comes from central and state governments. Any slowdown in budgeted capex, re-prioritisation across sectors, or administrative bottlenecks can temper revenue visibility for index constituents.

Interest-Rate and Leverage Sensitivity

Infrastructure businesses are typically capital-intensive and rely on long-term borrowing. If funding costs rise or credit conditions tighten, leveraged companies in infrastructure ETFs may face pressure on margins and cash flows, even when order books remain strong.

Exposure to Input-Cost Volatility

Infra indices often include cement, steel, and construction-linked names. Fluctuations in commodity prices, driven by global and domestic supply-demand shifts, can compress profitability and affect ETF performance.

Macro-Linked Demand Risk

Moody’s projects India’s GDP to grow around 6.5% annually till 2027, supported by infrastructure investment and consumption. If growth undershoots expectations, project awards and private capex participation could moderate, affecting infrastructure sector returns.

Factors to Consider Before Investing in Infrastructure ETFs

Sub-Sector Mix within the Index

The underlying index may lean towards EPC and contracting companies, utilities, transport-linked businesses, or power and energy infrastructure. A basket with a higher concentration of construction firms may exhibit behaviour different from one with larger allocations to utilities or diversified industrial groups.

Alignment with Capex Priorities

Recent budgets have increased allocations to roads, railways, and urban infrastructure, along with initiatives such as the National Infrastructure Pipeline and the Urban Infra Fund. The composition of companies and sub-sectors within the index indicates how closely it reflects ongoing government capex themes.

Order Backlog and Execution Track Record

Many infrastructure companies operate with sizeable order books tied to national programmes like the NIP. Publicly reported data on execution pace and cost patterns provide insight into the operational profile underlying an infrastructure index.

Urbanisation and Regional Focus

India’s urban population stands near 37% and is projected to increase further. Some index constituents have greater exposure to specific regions or large urban projects, which can affect their risk characteristics and business cycles.

Macro and Fiscal Conditions

The capital expenditure outlay of ₹11.21 lakh cr for FY 2025–26 is part of the broader fiscal environment, which includes deficit targets, borrowing limits, and state-level capex support. Movements in these factors shape the backdrop for infrastructure activity and can influence how infrastructure-linked indices behave.

Taxation on Infrastructure ETFs

Infrastructure ETFs attract capital gains tax based on holding duration, with different treatment for short-term and long-term gains.

Holding Period Tax Treatment
Short-Term (< 12 months ) Gains taxed at a flat rate of 20% (increased from the previous 15%).
Long-Term (> 12 months) Gains taxed at 12.5%. Exemption applies to the first ₹1.25 Lakh of long-term gains across all equity assets in a financial year.

Conclusion

Infrastructure ETFs mirror the broader capital formation cycle in India, capturing the effect of public capex, sector allocations, order book dynamics, and macro conditions. Their behaviour often reflects how listed companies engage with long-term programmes such as NIP, railway modernisation, and urban development initiatives. As the fiscal environment evolves, the underlying indices provide insight into how different sub-sectors respond to policy direction, execution progress, and regional infrastructure demand.

Frequently Asked Questions on Infrastructure ETFs

  1. What is an infrastructure ETF?

    An infrastructure ETF is an exchange-traded fund that tracks an index of companies in construction, utilities, transportation, engineering services, and energy infrastructure. Its portfolio reflects the performance of infrastructure-linked businesses listed in India.

  2. Which infrastructure ETF is best?

    The best infrastructure ETFs in India as of 15th January 2025 include: ICICI Pru Nifty Infrastructure ETF and Motilal Oswal BSE India Infra ETF.

  3. How do infrastructure ETFs work?

    Infrastructure ETFs replicate an index of companies involved in roads, railways, power networks, ports, and other capital assets. Their price movements generally mirror the index and depend on order inflows, project execution, sector weightages and government capex trends.

  4. Are infrastructure ETFs suitable for beginner stock market investors?

    Suitability depends on individual goals, risk appetite and understanding of the sector. Infrastructure ETFs provide index-based exposure to companies participating in India’s capital formation cycle.

  5. Is now a good time to invest in infrastructure?

    It depends on personal circumstances and risk comfort. India’s infrastructure cycle is supported by multi-year public capex, including ₹11.21 lakh cr allocated for FY 2025–26, but suitability varies by investor.

  6. How to sell infrastructure ETFs?

    Infrastructure ETFs can be sold by placing a sell order via your demat account on the exchange. The transaction executes at prevailing market prices and follows standard settlement timelines.