A report by Knight Frank India said the industrial and warehousing sector is expected to maintain a strong growth trajectory through the second half of 2026, supported by manufacturing expansion, greater outsourcing of logistics operations, policy support and improving multimodal connectivity. The completion of the Dedicated Freight Corridor network and India's growing appeal as an alternative manufacturing destination are expected to strengthen long-term occupier demand. The report said these factors have kept investor and occupier sentiment resilient. Industrial and warehousing leasing across India's eight primary markets rose 15 per cent year-on-year to 36.8 million sq ft (36.8 mn sq ft) in the first half of 2026, despite geopolitical disruptions, elevated freight costs and currency volatility. Growth was supported by robust domestic consumption, sustained manufacturing activity and continued investment in logistics infrastructure. The report highlighted diversified demand from domestic and export-oriented firms. Manufacturing remained the largest occupier segment, accounting for 46 per cent of total leasing at 17 mn sq ft, a 17 per cent increase from a year earlier. Third-party logistics operators accounted for 30 per cent of leasing at 11.1 mn sq ft, a 27 per cent year-on-year rise. These two segments together drove much of the absorption in primary markets. Mumbai led with 10.7 mn sq ft of transactions, the highest-ever half-yearly leasing volume and a 44 per cent year-on-year increase. NCR recorded five point nine mn sq ft, Bengaluru four mn sq ft, while Ahmedabad and Kolkata grew 15 per cent and 69 per cent respectively. Total industrial and warehousing stock reached 584.9 mn sq ft, up 14 per cent year-on-year, and vacancy improved to 11.4 per cent from 12.1 per cent. Grade A facilities accounted for 47 per cent of total stock, reflecting occupier preference for higher-quality, efficient and automation-ready warehouses. Knight Frank cautioned that land availability, fragmented ownership, regulatory complexities and project approval timelines could constrain future supply creation. The report said addressing these bottlenecks will be crucial to sustaining the sector's expansion and supporting India's emergence as a global manufacturing and logistics destination.