80% of Indian warehouses to incorporate automation by 2030, report

16 Oct 2023 CW Team

Grade A warehouses represent cutting-edge infrastructure equipped with high-quality storage, assembly, and distribution facilities. The surge in e-commerce, marked by increased consumer demand for swift deliveries and rising land prices, underscores the necessity for warehouse automation. The report categorises automation maturity on a scale from Level 0 (manual operations) to Level 4 (end-to-end automation). Currently, most warehouses in India fall within Levels 0 to 2, indicating varying degrees of automation implementation.

According to Manish Saigal, Managing Director at Alvarez & Marsal, adopting automation technologies requires a careful assessment of associated costs and benefits to ensure economic viability. While automation enhances efficiency and minimises errors and theft, organisations must align their chosen technologies with strategic goals and operational needs.

However, the adoption of automation in the Indian warehousing sector presents challenges. India's labour-intensive market necessitates time and investment in developing a robust automation ecosystem, including local service providers, cost-effective technology tools, competitive differentiation, and on-going maintenance and technical support. The financial feasibility of certain automation technologies is also limited by the existing size of warehouses in India. Additionally, long payback periods for automation solutions clash with the shorter lease terms typically offered by third-party logistics providers, creating financial obstacles for potential adopters.

The move towards automation aligns with the National Logistics Policy's objectives, which aim to reduce the country's logistics costs from 13-14% of the GDP to single digits. Ultimately, the integration of automation in the warehousing sector is a crucial step toward enhancing efficiency and meeting the evolving demands of the modern market.

"Join industry leaders at RAHSTA Expo, India's premier platform for roads, highways and traffic infrastructure. Register now to explore innovations, network with experts and shape the future of mobility."

As the demand for warehouse facilities in the country continues to rise, there is a growing trend towards automation in the infrastructure sector, driven by the need to enhance efficiency and reduce logistics costs. A report from business advisory firm Alvarez & Marsal reveals that over 80% of Indian warehouses are expected to incorporate some level of automation by 2030. This shift is particularly evident in Grade A warehouses, which are anticipated to expand at a compound annual growth rate of 12.5%, reaching approximately 324 million square feet by 2027-28. Grade A warehouses represent cutting-edge infrastructure equipped with high-quality storage, assembly, and distribution facilities. The surge in e-commerce, marked by increased consumer demand for swift deliveries and rising land prices, underscores the necessity for warehouse automation. The report categorises automation maturity on a scale from Level 0 (manual operations) to Level 4 (end-to-end automation). Currently, most warehouses in India fall within Levels 0 to 2, indicating varying degrees of automation implementation. According to Manish Saigal, Managing Director at Alvarez & Marsal, adopting automation technologies requires a careful assessment of associated costs and benefits to ensure economic viability. While automation enhances efficiency and minimises errors and theft, organisations must align their chosen technologies with strategic goals and operational needs. However, the adoption of automation in the Indian warehousing sector presents challenges. India's labour-intensive market necessitates time and investment in developing a robust automation ecosystem, including local service providers, cost-effective technology tools, competitive differentiation, and on-going maintenance and technical support. The financial feasibility of certain automation technologies is also limited by the existing size of warehouses in India. Additionally, long payback periods for automation solutions clash with the shorter lease terms typically offered by third-party logistics providers, creating financial obstacles for potential adopters. The move towards automation aligns with the National Logistics Policy's objectives, which aim to reduce the country's logistics costs from 13-14% of the GDP to single digits. Ultimately, the integration of automation in the warehousing sector is a crucial step toward enhancing efficiency and meeting the evolving demands of the modern market.

Infrastructure Energy

25 Jun 2026

Centre Prioritising Energy Security With Coal Gasification

Union minister for Coal and Mines G Kishan Reddy said the Centre is prioritising energy security through a strategic shift to coal gasification and has announced incentives totalling Rs 460 billion (bn) to support the effort. He said more than 35 companies will start coal gasification activities in India within two months and that the government is encouraging firms that bring technology to close the domestic technology gap. The minister described the initiative as aimed at reducing import dependence and developing indigenous capacity. India has the fifth-largest coal reserve in the world, and..

Infrastructure Urban

25 Jun 2026

BHEL and Coal India Invest Rs 250 bn in Odisha Gasification

Bharat Heavy Electricals (BHEL) and Coal India (CIL) are jointly investing Rs 250 billion in a coal gasification project in Odisha, with the Prime Minister laying the foundation stone in Jharsuguda. Union Coal and Mines Minister G Kishan Reddy described the initiative as a transformative shift in coal utilisation that will open industrial avenues for the state. The project moves coal beyond conventional power generation to industrial feedstocks. Coal gasification will convert coal into synthesis gas, a versatile feedstock for chemicals, fertilisers and synthetic fuels, and the technology is ex..

Infrastructure Energy

25 Jun 2026

BCCL Hands Over Dugdha Coal Washery To JSW Steel

Bharat Coking Coal has handed over the Dugdha Coal Washery to JSW Steel, marking the first coal washery asset monetisation under the Ministry of Coal's asset monetisation programme. The handover took place in the presence of senior officials from Bharat Coking Coal Ltd, JSW Steel and JSW Energy. The washery has a capacity of two million tonnes per annum (mn t per annum), and its transfer is intended to introduce private sector practices into coal beneficiation operations. The monetisation is aimed at modernising coal sector assets, improving operational efficiency and enhancing resource utilis..