India's Warehousing Space to Grow by 13-14% in Major Cities by FY2025

10 Jul 2024 CW Team

A recent report projects a significant 13-14% increase in warehousing space across India's major cities by FY2025. This growth is driven by the booming e-commerce sector, rising manufacturing activities, and the expansion of retail chains, all demanding efficient storage and distribution solutions.

Cities such as Mumbai, Delhi-NCR, Bengaluru, and Hyderabad are at the forefront of this expansion, attracting substantial investments in modern warehousing facilities. These new spaces will feature advanced technologies and automation, optimising supply chain operations to meet the dynamic needs of consumers.

The implementation of the Goods and Services Tax (GST) has also played a crucial role, streamlining logistics and promoting the consolidation of warehousing operations. This, coupled with the rise of third-party logistics (3PL) providers, has further fueled the demand for sophisticated warehousing solutions.

The increase in warehousing capacity is expected to enhance supply chain efficiency, reduce logistics costs, and improve the overall business climate in these cities. Additionally, this growth is anticipated to create job opportunities and stimulate economic activity in the regions.

While the expansion presents lucrative opportunities for developers, investors, and logistics companies, the report underscores the importance of sustainable development practices. Ensuring that new warehousing infrastructure aligns with environmental and social considerations is crucial for long-term success.

In summary, the expected 13-14% rise in warehousing space in India's major cities by FY2025 highlights the robust growth of the logistics sector. This expansion will play a pivotal role in supporting the country's economic development and meeting the increasing demands of various industries.

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