Warehousing Industry in India Strengthens
News: NEW DELHI: India has witnessed a remarkable surge in warehousing demand across key sectors, with figures rising from 15% in 2019 to 25% in 2024.
This increase is primarily driven by favorable government initiatives and a global strategy to diversify supply chains away from China.
Cities like Pune, Delhi-NCR, and Kolkata are emerging as key beneficiaries of this growth, further bolstering India’s manufacturing sector, which employs over 27 million people.
Factors Driving Warehousing Demand
As per a report by CBRE, the demand for warehousing in sectors like engineering, electronics, and auto manufacturing has surged from 15% in 2019 to 25% in the first half of 2024. This change is primarily driven by:
Government Policies: A key initiative enhancing the demand for warehousing is the Production Linked Incentive (PLI) scheme.
Growth in Warehousing Leasing
Total warehousing leasing from the aforementioned sectors reached an impressive 4.1 million sq. ft. in the first half of 2024.
Cities like Pune, Delhi-NCR, and Kolkata are at the forefront of this demand surge:
Pune: Its share of total demand grew from 6% in 2019 to 13% in 2024.
Delhi-NCR: This region witnessed an 18% share of the demand.
Kolkata: Warehousing demand in Kolkata has also increased, reaching 12% in 2024.
Source: Indiashippingnews
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