New National Logistics Policy to Boost Warehousing Industrial Park Growth
The government’s National Logistics Policy aimed at facilitating a unified regulatory environment and institutional framework governing the sector is expected to help the property sector capitalize on the exponential growth of commercial real estate including warehousing and industrial parks across both established and emerging logistics markets. The policy will offer a framework to set up Multi-Modal Logistics Parks (MMLPs) in key markets while ensuring multi-modality addressing the first and last-mile connectivity at a faster pace. The new policy, first introduced in the Budget 2020 is aimed at bringing in an integrated and tech-enabled approach to logistics operations to bridge the efficiency gap. This is also expected to help attract investment, which is also on the rise, into the sector. Along with the Gatishakti National Master Plan launched in October 2021, the new logistic policy is expected to ease the way for multimodal connectivity and also help attract more investment into this segment. While unveiling the policy, Prime Minister Modi added new eco-friendly waterways are being set up, 40 air cargo terminals have been set up to facilitate exports, 30 airports have cold storage facilities, and 35 multi-modal logistics facilities are being set up to ensure better logistics infrastructure across the country. The proposed digitisation is a step to induce transparency and smooth execution, industry experts said. In India, a favourable regulatory environment, along with the government’s support through policy and reforms, has started to boost spending on infrastructure and in turn the overall demand for modern warehousing. The warehousing sector is expected to record the highest ever absorption of warehousing this year due to the aggressive expansion of e-commerce and the growth of third-party logistics (3PL) companies. Indian warehousing has been attracting interest from institutional investors, with more than $5 billion of funds being committed by private equity firms and pension funds such as CPPIB, Warburg Pincus, and Ivanhoe Cambridge over the past five years. The warehousing and logistics segment of real estate, which has emerged as relatively immune to the shocks of Covid-19, is expected to gain further strength and attract more investment in the next couple of years.
Tags : National Logistics Policy Warehousing Industrial Park Growth government unified regulatory environment institutional framework commercial real estate Multi-Modal Logistics Parks Prime Minister Narendra Modi