New Delhi: The demand for warehousing facilities in India has witnessed a notable increase, rising from 15 percent in 2019 to 25 percent during the first half of 2024, as per a report by CBRE.
This escalation can be primarily attributed to favorable governmental policies, such as the Production Linked Incentive (PLI) scheme, which encompasses 14 sectors, and the global trend towards the "China + 1" strategy, which encourages manufacturers to diversify their supply chains beyond China.
The aggregate area leased for warehousing by these sectors has reached an impressive figure of 4.1 million square feet during the same period.
Among the metropolitan areas reaping the benefits of this surge, Pune stands out as the sector with the highest demand increase, with its market share soaring from 6 percent in 2019 to 13 percent by the first half of 2024. Delhi-NCR and Kolkata have also seen a significant rise in warehousing demand, with figures reaching 18 percent and 12 percent, respectively.
The engineering and manufacturing sectors have been pivotal in contributing to 11 percent of the total warehousing leasing in the first half of 2024, an increase from 8 percent in the preceding year.
Key sectors driving this growth include domestic appliances, auto components, and the automobile industry, all of which have demonstrated strong demand.
The manufacturing sector is of paramount importance to India's economic growth, accounting for 14 percent of the country's Gross Domestic Product (GDP) and employing over 27 million individuals.
Anshuman Magazine, Chairman & CEO of India, Southeast Asia, Middle East & Africa at CBRE, remarked, "India's manufacturing sector is on the brink of a transformative journey, garnering significant international attention."
He further stated, "The sustained economic development in both leading and emerging markets of the Asia-Pacific region will enhance consumer demand for manufactured goods, thereby accelerating the expansion of the region's manufacturing sector."
Programs such as the GatiShakti National Master Plan are designed to optimize supply chains, while the National Logistics Policy advocates for sustainable and cost-effective modes of transport.
