India’s industrial and logistics sector witnessed significant growth in 2025, with a record absorption of 76.5 million square feet, marking an 18.6% increase from the previous year. The manufacturing segment emerged as the key driver, constituting 29% of the total absorption, followed by third-party logistics (3PL) at 28%, FMCG and FMCD at 11%, and retail at 6%.
The ‘Make in India’ initiative has played a crucial role in transforming the manufacturing landscape, evolving into a global ‘Made By India’ manufacturing platform. This shift highlights the strengthening of domestic production capabilities and India’s expanding role in global supply chains, according to Savills India’s Managing Director, Srinivas N.
Tier 1 cities accounted for 78% of the total absorption, while tier 2 and 3 cities made up the remaining 22%. Delhi-NCR led the absorption contributions at 17%, followed by Pune and Mumbai at 15% and 14% respectively. The sector is poised for further growth in 2026, with absorption and supply expected to exceed 80 million square feet, driven by manufacturing, 3PL, and FMCG/FMCD occupiers.
