Improved domestic capabilities in recent years, deliberate attempts towards shifting away from a services-based economy and robust government support have resulted in India becoming an active player in the global manufacturing supply chain. This trend was further accentuated with the onset of COVID-19, prompting several companies to diversify their operations across markets. In this report, we have outlined key themes (listed below) which are shaping the industrial & warehousing sector in India:

  • Five pillars on which India’s manufacturing capabilities rely: Favorable demographics, enhanced global investment competitiveness, widening reach of digitisation, improved Ease of Doing Business ranking and growing trade potential
  • India’s competitive advantages vis-à-vis key Asian markets: High potential for manufacturing growth, relatively low unit labor costs and an expanding market size
  • Favorable regulatory and infrastructure initiatives: Continued thrust on policy reforms viz. Production Linked Incentive Scheme, Draft National Logistics Policy, National Industrial Corridor Development Programme, etc.; infrastructure initiatives such as Bharatmala, Dedicated Freight Corridors, etc.
  • Expansion of the warehousing sector: Robust growth of the manufacturing sector coupled with the rise of e-commerce and 3PL players led to increasing demand for warehouse space over the past few years.
  • Acquiring a tech edge: Tech enhancement of warehousing spaces / supply chain elements to become more widespread through increased application of automation, AI, IoT, etc.