India’s industrial and warehousing sector recorded a strong rebound in the January–March quarter, with demand rising 22 percent year-on-year, driven by sustained manufacturing activity, e-commerce expansion, and supply chain diversification, according to industry data.
The growth reflects continued leasing momentum across key industrial corridors, with companies expanding storage and distribution capacities to meet rising consumption and faster delivery requirements. Logistics operators and third-party service providers also contributed to the surge, as firms increasingly outsourced warehousing and distribution functions.
Major demand was reported across key hubs including Delhi-NCR, Mumbai, Chennai, Bengaluru, and Pune, where improved infrastructure connectivity and proximity to consumption centers supported occupancy levels.
Industry experts said the rise in demand highlights India’s strengthening role as a global manufacturing and logistics hub, supported by policy initiatives such as the Production Linked Incentive (PLI) scheme and ongoing infrastructure upgrades in highways, ports, and freight corridors.
However, analysts cautioned that rising land and rental costs in prime logistics clusters could pose challenges for smaller players, even as overall market fundamentals remain strong.
The outlook for the coming quarters remains positive, with continued growth expected from retail, FMCG, e-commerce, and manufacturing sectors.