India's Manufacturing Boom Drives Warehousing Demand
As India solidifies its position as a global manufacturing powerhouse, the demand for warehousing space is skyrocketing. Multinational companies are flocking to the country, setting up factories and driving up the need for storage facilities.
A Surge in Manufacturing-Related Warehousing:
In the first half of 2024, warehousing demand from manufacturing sectors surged to an impressive 25% of the total domestic market. This significant increase can be attributed to factors such as:
The "China Plus One" Strategy: Multinational companies are diversifying their supply chains and looking to India as an alternative to China.
Government Incentives: Supportive policies like the Production Linked Incentive (PLI) scheme have encouraged manufacturers to invest in India.
Pune Leads the Way:
Among Indian cities, Pune has witnessed the most substantial growth in warehousing and industrial space take-up by manufacturers. This surge, from 6% in 2019 to 13% in 2024, highlights Pune's increasing appeal as a manufacturing hub.
Delhi-NCR and Kolkata Also Flourish:
Other major cities, Delhi-NCR and Kolkata, have also experienced notable increases in warehousing demand from manufacturing sectors. This growth reflects the positive impact of government reforms and improved business environments in these regions.
Global Manufacturers Invest in India:
The improved conditions have attracted significant investments from global manufacturing giants like Apple, Samsung, and Boeing. These companies are contributing to the booming demand for warehousing space in India.
A Bright Future for Warehousing:
As India's manufacturing sector continues to expand, the demand for warehousing facilities is expected to remain strong. This growth presents exciting opportunities for businesses involved in the warehousing and logistics industry.
