Warehousing in India

Institutional investors’ interest in Indian warehousing market is growing manifold on the back of the government’s initiatives such as Make in India, implementation of the Goods & Services Tax, and infrastructure status for the logistics sector.

Global and domestic institutional investors have, over the past four years, invested over $3.4 billion into Indian warehousing that has long remained unorganised. These accounted for around 26% of the total private equity (PE) investments into real estate during this period.

The demand for warehouses is growing as there is a rise in demand from sectors like e- commerce, FMCG, consumer durables and manufacturing.

The growth in warehousing in India is primarily being driven by the following factors:

  • Growing manufacturing activity
  • Rising domestic consumption,
  • Increasing international trade
  • Emergence of organised retail in the country
  • Increasing private and foreign investments in infrastructure
  • Easing of government regulations

Moreover, the Indian market is witnessing a demand of innovative warehousing which is encouraging lot of organized players to enter this market. Warehousing is differently a segment which can’t be ignored.