India has pinpointed 30 promising industrial and warehousing locations, fueled by infrastructure growth, manufacturing expansion, and policy initiatives. Among these, eight cities are already established markets, with an additional 22 emerging and nascent hubs identified by Colliers. The selection of these cities is based on key factors such as enhanced connectivity, upcoming industrial smart cities, proposed logistics parks, sea and airport expansions, and integrated textile hubs.
The country’s manufacturing sector, currently contributing 17% to the GDP, aims to raise this figure to 25% by 2035. Consequently, the industrial and warehousing sector is becoming a focal point for growth, driven by a surge in demand for modern warehouses and increased institutional investments. Vijay Ganesh, Managing Director of Industrial and Logistics Services at Colliers India, highlighted the upcoming growth in industrial and warehousing sectors, emphasizing the importance of expanding industrial corridors, logistics parks, smart cities, and airport projects.
The recent budget emphasizes economic growth through enhanced domestic manufacturing capabilities, with an allocation of Rs 5,000 crore per City Economic Regions (CER) and targeted support for key sectors like life sciences, electronics, and textiles. This strategic approach is expected to boost long-term warehousing growth in established markets and attract investments in emerging and nascent markets. The 30 identified high-potential industrial and warehousing hotspots are spread across various regions of India, indicating balanced growth prospects.
The report also distinguishes between “Prime hubs,” “Emerging hubs,” and “Nascent hubs.” The Prime hubs, already established as demand centers, are projected to mature further, with industrial and warehousing demand in the top 8 cities estimated to exceed 50 million square feet by 2030. Emerging hubs are expected to gain momentum, driven by critical industrial corridors and logistics hubs. Nascent hubs, on the other hand, will progress gradually, contingent upon factors like infrastructure development, policy support, and investor readiness.
