How Global Expansion is Reshaping India's Warehousing Sector

As global trade corridors shift and supply chains become more distributed, India's warehousing sector is emerging as a major player in the international logistics landscape. With strategic government policies, growing demand from multinational corporations, and robust infrastructure development, India is no longer just a domestic logistics hub, it's fast becoming a global warehousing destination.

India’s geographic location positions it as a natural bridge between East and West. Add to that the government’s National Logistics Policy and initiatives like PM Gati Shakti and the development of Dedicated Freight Corridors (DFCs), and the country offers a compelling case for global warehousing operations.

According to IANS, as reported by the Economic Times, India's total warehousing stock reached 533.1 million square feet in 2024. Tier II and III cities accounted for approximately 100 million square feet of this total, representing a fourfold increase since 2017. Expectations indicate that the total warehousing stock will exceed 500 million square feet by 2027.

India is investing heavily in MMLP across 35 strategic locations. These parks integrate rail, road, air, and port logistics, enabling faster cargo movement and cost efficiency.

The upcoming MMLP in Chennai will serve as a key link between southern industrial clusters and global ports, handling an estimated 10 million tonnes of cargo annually. The logistics park at Chennai is strategically located at 52 km from the Chennai Port, 80 km from Ennore Port and 87 km from Kattupalli Port.

These facilities reduce turnaround times and allow international companies to set up regional distribution centres directly within India.

Global investors are seeing Indian warehousing as a high-yield asset class. Post-pandemic, companies have adopted a "China+1" strategy to diversify supply chains. This has led to an influx of global capital into India’s logistics real estate.

Major Players:

• Blackstone has invested over $1 billion in Indian warehousing through Horizon Industrial Parks.

• Panattoni and ESR are building Grade A warehouses across cities like Pune, Chennai, and Bengaluru.

Institutional investment in Indian warehousing reached $1.5 billion in 2024, more than double the previous year.

As international companies enter the Indian market, the need for standardisation and efficiency has fueled the adoption of Warehouse Management Systems (WMS), automation, and IoT. Warehouses are now equipped to meet global service level agreements (SLAs) with improved picking accuracy and real-time inventory tracking.

Stat: Automated warehouses can improve throughput by 2–3x and reduce labor costs by 30–40%.

Export Readiness & Supply Chain Resilience

India's warehousing network has evolved to become more outward-focused. Global brands are now establishing export-oriented facilities in India to cater to markets in Southeast Asia, Africa, and the Middle East. This geographic expansion improves supply chain resilience.

During disruptions related to COVID-19, companies with warehouses in India were able to reroute their inventory more quickly than those that relied solely on China.

India's warehousing sector is experiencing a significant transformation driven by global expansion. With its strategic location advantages, robust infrastructure development, increasing foreign direct investment (FDI), and technology-driven operations, India is not only keeping pace with global trends but also helping to shape them.

For global businesses looking for long-term logistics efficiency, India provides the necessary capacity and connectivity to succeed in an ever-evolving supply chain ecosystem.