CBRE South Asia Pvt. Ltd., one of India’s top real estate consultancy firms, has published a comprehensive report titled, ‘Fortifying India’s I&L Landscape with a New Manufacturing Growth Formula.’ The report emphasizes that the manufacturing sector’s expansion has played a crucial role in driving the increasing demand for warehousing spaces across the country. Key sectors such as engineering and manufacturing, electronics and electricals, as well as the auto and ancillary industries, have seen a significant rise in their share of warehousing usage, growing from 15% in 2019 to 25% in the first half of 2024. The total leasing space from these industries reached 4.1 million square feet in H1 2024.
Pune has emerged as the leader in the uptake of warehousing space by manufacturing players, with its share increasing from 6% in 2019 to 13% in the first half of 2024. Other major markets like Delhi-NCR and Kolkata followed closely, recording a share of 18% and 12%, respectively. The surge in demand can be attributed to several factors, particularly the “China + 1” strategy and the government’s Production Linked Incentive (PLI) scheme, which covers 14 key sectors. These initiatives have provided a strong push to manufacturing activities in India, further enhancing the need for larger and more advanced warehousing facilities.
Anshuman Magazine, the Chairman & CEO of CBRE for India, Southeast Asia, the Middle East, and Africa, commented on the evolving trends. He stated, “Despite the ongoing global geopolitical changes and economic challenges, India stands out as an attractive destination for growth. The manufacturing sector in India is undergoing a significant transformation and is gaining increasing attention on the global stage.” He emphasized that this growth trajectory is propelled by various factors, such as a stable investment climate, strategic initiatives by the government, and a robust domestic market.
The report also points out that the continued economic development in both leading and emerging markets in the Asia-Pacific region will play a key role in boosting consumer demand for manufactured goods. This will further strengthen the growth of the manufacturing sector across the region, contributing to higher demand for warehousing and logistics infrastructure.
In conclusion, the manufacturing sector’s robust growth, supported by favorable government policies and global strategies, is not only transforming India into a manufacturing hub but also creating significant opportunities in the logistics and warehousing industry. This expansion is set to continue as India capitalizes on its competitive advantages and strengthens its position in the global supply chain. The rising demand for warehousing space is a clear indication of the sector’s evolving needs and its impact on the overall industrial landscape.