India’s growth as a global manufacturing hub has boosted warehousing demand from manufacturing-related sectors, increasing their share of total domestic warehousing to 25% in H1 2024, up from 15% in 2019. This surge is driven by the ‘China plus one’ strategy and government policies like the PLI scheme.
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India’s rise as a global manufacturing hub is driving a surge in warehousing demand from manufacturing-related sectors, with multinationals setting up factories in the country. Demand from these sectors increased to 25% of total domestic warehousing demand in the first half of 2024, up from 15% in 2019. This growth was led by factors like the adoption of the ‘China plus one’ strategy by multinationals and supportive Indian government policies, such as the production-linked incentive (PLI) scheme, which currently covers 14 sectors.
In the first half of 2024, total leasing of warehousing space by manufacturing-related sectors reached 4.1 million sq ft, according to CBRE South Asia, a real estate consulting firm.
The CBRE report, titled ‘Fortifying India’s I&L landscape with a new manufacturing growth formula’, highlighted that Pune experienced the highest increase in warehousing and industrial space uptake by manufacturers, rising from 6% in 2019 to 13% in the first half of 2024. Delhi-NCR and Kolkata also saw significant growth, with their warehousing demand reaching 18% and 12%, respectively, in the same period. Industry experts attribute this growth to regulatory reforms and an improved business environment by the Indian government, which has attracted global manufacturers such as Apple, Samsung, and Boeing to invest in India’s manufacturing sector.
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