Manufacturing Push Reshapes Industrial Real Estate

India’s manufacturing sector, currently contributing about 17% to GDP, is expected to rise to nearly 25% by 2035. This shift is fueling structural demand for modern, efficient warehousing facilities across the country.

The report, titled “India’s Emerging Industrial & Warehousing Corridors: Mapping the Next Growth Frontier”, highlights policy enablers such as:

• National Industrial Corridor Development Programme (NICDP)
• PM Gati Shakti
• National Logistics Policy
• BioPharma SHAKTI Scheme
• Semiconductor Mission 2.0

Together, these initiatives are recalibrating supply chains and strengthening India’s logistics backbone.

30 High-Potential Cities: Prime, Emerging & Nascent

After assessing over 100 cities using parameters like freight connectivity, industrial ecosystem maturity, smart cities development, logistics parks, textile hubs and airport/port expansion, Colliers identified 30 hotspots.

Prime Hubs (8 Cities – Established Leaders)

Ahmedabad, Bengaluru, Chennai, Delhi NCR, Hyderabad, Kolkata, Mumbai and Pune

These cities already anchor India’s Grade A warehousing demand and are projected to absorb new supply quickly.

Emerging Hubs (12 Cities – Scaling Momentum)

Bhopal, Bhubaneswar, Coimbatore, Indore, Jaipur, Kochi, Lucknow, Nashik, Patna, Rajpura, Surat and Visakhapatnam

These markets are likely to gain traction as freight corridors, multimodal parks and industrial smart cities near completion.

Nascent Hubs (10 Cities – Future Growth Engines)

Amravati, Guwahati, Hosur, Jammu, Jamshedpur, Kanpur, Nagpur, Prayagraj, Raipur and Vijayawada

These cities are expected to see gradual acceleration as infrastructure readiness and investor participation deepen.

Infrastructure Wave to Amplify Demand

India’s logistics transformation is anchored in large-scale infrastructure rollout:

• 11 Industrial Corridors under development
• 5 Dedicated Freight Corridors
• 20 Industrial Smart Cities
• 35 Multi-Modal Logistics Parks (5 approved so far)
• 7 PM MITRA Textile Parks
• 800+ Sagarmala projects (200 completed)
• 8 international airports under construction

This infrastructure push is expected to drive annual industrial and warehousing demand across the top eight cities beyond 50 million sq ft by 2030.

Market Outlook: Multi-Decade Expansion

The numbers signal long-term scale:

• 2010 Demand: <20 msf
• 2025 Demand: ~37 msf
• 2030 (Projected): 50+ msf

Grade A stock across the top eight cities has grown from about 20 msf in 2010 to nearly 300 msf in 2025. It is projected to reach ~500 msf by 2030 and potentially exceed 2,000 msf (2 bn sq ft) by 2047.

The growth is being driven by 3PL players, e-commerce, automobiles, engineering, FMCG and manufacturing expansion, alongside automation, sustainability and supply chain integration trends.

The Bigger Picture

With policy alignment, manufacturing incentives and multimodal infrastructure converging, India’s industrial and warehousing sector is poised to become one of the most powerful real estate growth drivers over the next two decades.

As established markets consolidate and smaller cities evolve into viable logistics nodes, the next phase of growth could be more regionally balanced and structurally resilient than ever before.

Also Read: Robust Investments Bolster Warehousing & Logistics Sector in 2024

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