India’s warehousing sector may attract ₹49,500 cr by 2021

India’s warehousing sector has attracted investments of ₹25,400 crore since 2017 and the inflow is likely to reach ₹49,500 crore by 2021 on robust demand for logistics space by e-commerce firms, according to global property consultant Colliers, which noted the sector has been characterised by fragmented sheds and godowns, but is turning organised now.

Occupiers looking at large contiguous warehouse leases, especially in the e-commerce and 3PL (third-party logistics) sectors, should look at select micro-markets in Mumbai and Pune that offer a good mix of industrial and multi-purpose warehouses, Colliers said.

“Bengaluru should also be explored as it offers seamless transfer of goods between states, benefitting from the removal of state-level taxes,” said Colliers International India managing director and chairman Sankey Prasad.

He said the sector is benefiting from government policy initiatives like the goods and services tax (GST) implementation and the Make in India programme, as well as global trade dynamics and evolving consumption patterns, according to a news agency report.

The initiatives augmented growth and private sector participation in a sector which was not well-regulated, the consultant added.