Warehousing to emerge as lifeline for India's growth
WAREHOUSING & LOGISTICS

Warehousing to emerge as lifeline for India's growth

In a post COVID world, where businesses consciously navigate an uncertain new normal, warehousing will emerge as the most crucial lifeline for India's growth over the next 10-year horizon.

 
Industry sources prospect the warehousing and logistics sector to be one of the fastest, most strategic asset classes to recover from this pandemic, attributed to the sharp increase in domestic demand and a possible major manufacturing shift, making India 'the preferred destination' for global manufacturers. Warehousing in India, hence, stands as an obvious beneficiary, thanks in part to rapid acceleration of e-commerce demands as well as the accelerated behaviour shift of its commercial business ecosystem that has urgently pivoted to expand a footprint online, simply in order to survive.
 
Welspun One Logistics Parks (WOLP) has recognised the need to delve deeper via a research paper on the warehousing sector to highlight potential growth prospects and future forecasts for a post-COVID-19 India. WOLP's analysis offers an in-depth assessment of factors responsible for India's accelerated preference for Grade A warehousing and the urgent need for rapid digitalization, regulatory compliance, human safety, hygiene, and automation.
 
The WOLP report estimates an increase of 10 per cent in YoY demand for Grade A facilities to a new total of 35 per cent to meet additional unmet demands, as opposed to the earlier predicted industry demand of 25 per cent. 
  
Critical demand drivers:

Warehousing has overnight become the backbone for online grocers and other e-commerce businesses who struggle to service an unprecedented 3-5x rise in demand for essentials and are under pressure to scale operations following a massive fundraising.
At one end of the spectrum, the rising consumption of the 300 MM growing middle class serves as a key contributor to domestic demand, whereas at the other end, robust storage systems for agricultural produce (in terms of cold storage to meet basic needs) adds to create an expedited demand for quality warehousing across the country.

Sector readiness:

With a 100 per cent FDI permitted in warehousing and logistics, the sector has now become a hotbed for attracting funds and incentivizing domestic investors, which in turn can make warehousing single-handedly tip India’s scale towards positive growth.
Insulated from credit risks when compared to the other real estate asset classes, a fully implemented GST and the government impetus on truck infrastructure has primed  the warehousing sector to respond and capitalise on the demand upswing.
Most warehousing state policies are matured, making warehousing a viable and lucrative industry, ready for imminent scale.
With major road networks, freight corridors and infrastructure spends on logistics already underway, the sector is ripe to fulfil the burgeoning demand.
 
Supply-side dynamics:

With clouds of uncertainty looming over previous investments made in co-working spaces, hospitality and retail, investors will look at re-allocating capital into the more  promising warehousing industry, pointing towards an upward trend in investment.


Large scale economic impact:

The warehousing sector is slated to become a necessity as large scale foreign investment and relaxed labour laws will make India a preferred destination for manufacturing.
A possible re-allocation of the white-collared workforce to Tier-II and Tier-III cities which would become the new epicentres of growth, leading to a possible shift in consumption centres and logistic distribution patterns.
Further demand for warehousing will lead to monumental job creation and major upliftment of the society and economy at large. This makes the warehousing sector one of the biggest contributors to an employment boom in India.

This subsequent macro-economic effect of warehousing cannot be ignored and must be given its due.

In a post COVID world, where businesses consciously navigate an uncertain new normal, warehousing will emerge as the most crucial lifeline for India's growth over the next 10-year horizon.Also read: Where is India’s warehousing sector heading to? Industry sources prospect the warehousing and logistics sector to be one of the fastest, most strategic asset classes to recover from this pandemic, attributed to the sharp increase in domestic demand and a possible major manufacturing shift, making India 'the preferred destination' for global manufacturers. Warehousing in India, hence, stands as an obvious beneficiary, thanks in part to rapid acceleration of e-commerce demands as well as the accelerated behaviour shift of its commercial business ecosystem that has urgently pivoted to expand a footprint online, simply in order to survive. Welspun One Logistics Parks (WOLP) has recognised the need to delve deeper via a research paper on the warehousing sector to highlight potential growth prospects and future forecasts for a post-COVID-19 India. WOLP's analysis offers an in-depth assessment of factors responsible for India's accelerated preference for Grade A warehousing and the urgent need for rapid digitalization, regulatory compliance, human safety, hygiene, and automation. The WOLP report estimates an increase of 10 per cent in YoY demand for Grade A facilities to a new total of 35 per cent to meet additional unmet demands, as opposed to the earlier predicted industry demand of 25 per cent.   Critical demand drivers:• Warehousing has overnight become the backbone for online grocers and other e-commerce businesses who struggle to service an unprecedented 3-5x rise in demand for essentials and are under pressure to scale operations following a massive fundraising.• At one end of the spectrum, the rising consumption of the 300 MM growing middle class serves as a key contributor to domestic demand, whereas at the other end, robust storage systems for agricultural produce (in terms of cold storage to meet basic needs) adds to create an expedited demand for quality warehousing across the country.Sector readiness:• With a 100 per cent FDI permitted in warehousing and logistics, the sector has now become a hotbed for attracting funds and incentivizing domestic investors, which in turn can make warehousing single-handedly tip India’s scale towards positive growth.• Insulated from credit risks when compared to the other real estate asset classes, a fully implemented GST and the government impetus on truck infrastructure has primed  the warehousing sector to respond and capitalise on the demand upswing.• Most warehousing state policies are matured, making warehousing a viable and lucrative industry, ready for imminent scale.• With major road networks, freight corridors and infrastructure spends on logistics already underway, the sector is ripe to fulfil the burgeoning demand. Supply-side dynamics:• With clouds of uncertainty looming over previous investments made in co-working spaces, hospitality and retail, investors will look at re-allocating capital into the more  promising warehousing industry, pointing towards an upward trend in investment.Also read: PE funds inject $1.1 billion into logistics and warehousing in two years.Large scale economic impact:• The warehousing sector is slated to become a necessity as large scale foreign investment and relaxed labour laws will make India a preferred destination for manufacturing.• A possible re-allocation of the white-collared workforce to Tier-II and Tier-III cities which would become the new epicentres of growth, leading to a possible shift in consumption centres and logistic distribution patterns.• Further demand for warehousing will lead to monumental job creation and major upliftment of the society and economy at large. This makes the warehousing sector one of the biggest contributors to an employment boom in India.This subsequent macro-economic effect of warehousing cannot be ignored and must be given its due.

Next Story
Infrastructure Urban

Indian Delegation Visits South Africa for Trade and Investment Talks

A nine-member Indian delegation participated in the second session of the India-South Africa Joint Working Group on Trade and Investment (JWGTI) held in Pretoria from 22 to 23 April 2025. Discussions were conducted in a cordial atmosphere, focusing on expanding trade ties, boosting investments, and fostering greater people-to-people exchanges. The meeting was co-chaired by Malose Letsoalo, Chief Director, Bilateral Trade Relations, Department of Trade, Industry and Competition of South Africa, and Priya Nair, Economic Adviser, Department of Commerce, India. Delegates from the High Commission ..

Next Story
Infrastructure Urban

Ministry of Cooperation Inaugurates NCOL Organic Packaging Facility

The Ministry of Cooperation inaugurated a new state-of-the-art packaging facility of National Cooperative Organics Limited (NCOL) in Noida, Uttar Pradesh. The centre is dedicated to packaging pulses and organic products while maintaining high hygiene and quality standards. Dr Ashish Kumar Bhutani, Secretary, Ministry of Cooperation, called the facility a major milestone in promoting the Bharat Organics brand. The initiative aims to empower farmers and expand access to certified organic produce across India, while offering premium prices to farmers and affordable organic food to consumers. Un..

Next Story
Infrastructure Urban

Adani Airport Seeks $750 Million Loan from Global Banks

Adani Group is in discussions for an offshore loan of up to $750 million for its airport arm, Adani Airport Holdings Limited, with international banks such as Barclays Plc, First Abu Dhabi Bank PJSC, and Standard Chartered Bank Plc. The funds will support capital expenditure and repay dollar-denominated debt maturing in September. The deal is expected to conclude by early May. Adani Airport Holdings Limited operates seven major airports across India and is preparing to open a new international hub worth $two billion on the outskirts of Mumbai. This would be the Group’s second significant o..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?