The industry’s expansion is driven by sectors such as food, FMCG, agriculture, pharmaceuticals, and the rise of organized retail. The introduction of the Goods and Services Tax (GST) in 2017 acted as a key catalyst, boosting the warehousing market from 35 million sq ft in 2015-17 to 77 million sq ft in 2018-20.
The sector saw a decline during the early phases of the COVID-19 pandemic, with an 11% drop in demand due to supply chain disruptions and halted production. However, it rebounded as e-commerce and cold-chain demands surged, especially in pharmaceuticals.
India’s warehousing industry continues to formalize, with the consolidation of smaller warehouses and increased participation from international players. While significant progress has been made, India still trails behind major economies in per capita warehousing space, offering room for further growth.
