The Indian Industrial and Warehousing sector is likely to see an investment inflow of $3.6 Billion in the upcoming year and it is expected to rise up to $7 Billion by 2021. It is mainly due to the demand for larger facilities from the E-commerce companies. The industrial and warehousing sector has attracted significant investments since 2017 led by E-commerce and other consumer-based companies. Leading E-commerce companies have been making significant investments in warehousing space; according to Colliers Research – E-commerce companies have been leasing large spaces in the range of 100,000 to 500,000 square feet.
Colliers International further pointed out that the sector is benefitting from government policy initiatives such as Goods and Service Tax (GST), Make in India program as well as global trade dynamics. For instance, according to one Economic Times coverage published back in June 2019, the Indian warehousing spaces went up by 77 percent in the previous calendar year.
The sector’s storage requirement is expected to rise up to 86 million square meters by the year 2024. The current demand for warehousing space is estimated to be around 68 million square meters for the manufacturing sector.
According to Megha Maan, Associate Director of Colliers Research Institute: “Investments into the industrial and warehousing sector will further increase as foreign and domestic players expand driven by favorable demand drivers and a simpler taxation regime. Hence, developers may look at collaborating with corporate and government agencies that own land banks,”
The ongoing trade tensions between China and the U.S.A is likely to provide India with an opportunity to gain traction in the industrial and manufacturing sector.