March15 , 2025

    India’s logistics & warehousing sector sees rising growth in tier 2 cities

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    India’s logistics and warehousing sector is evolving rapidly, driven by supportive government policies, infrastructure upgrades, technological advancements, and shifting consumer behaviour.

    While tier 1 cities remain key hubs, the market is expanding significantly in 12 emerging tier 2-3 cities, fuelled by a consumption boom, with a major share of online purchases now originating from these regions. Government initiatives, such as the Urban Infrastructure Development Fund, which allocates ₹10,000 crore annually to enhance 459 tier 2 and 580 tier 3 cities, are further accelerating this growth. Several policies, including the ambitious Vision 2047, which aims to position India as a $30 trillion economy.

    This progress underscores the critical role of logistics in enabling seamless supply chains, enhancing regional connectivity, and fuelling sustained economic growth.

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