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As Gujarat cements its position as a national logistics and industrial powerhouse, industry leaders share their perspectives on the state’s swift growth, progressive policies, strong infrastructure, and the opportunities and challenges defining its warehousing and industrial landscape. According to Rumit Parikh, Sr Director- Occupier Strategy & Solutions, Retail| Industrial & Logistics, Branch Head- Ahmedabad · Knight Frank India, since 2017, Gujarat has emerged as a major logistics and warehousing hub in India, due to its strategic location, robust infrastructure, and industry-friendly policies.
“Back then, the state had around 12–15 million sq. ft. of Grade A and B warehousing space, mostly in Ahmedabad, Gandhidham, and Vapi. By 2025, that number has more than doubled to over 35 million sq. ft., with Ahmedabad alone contributing over 15 million sq. ft., roughly 40% of the total. This growth has been fueled by rising demand from manufacturing, e-commerce, 3PL, FMCG, and cold storage sectors, with Ahmedabad seeing a 25% year-on year jump in leasing activity in 2024–25, and Grade A facilities accounting for more than half of all deals despite ongoing challenges in land and developer availability.”
Elaborating on what distinguishes Gujarat’s warehousing sector from other states in India, Daljit Singh, Director Marketing, NDR InvIT, said, “Gujarat, once primarily an agrarian state, has transformed into an industrial powerhouse, now contributing nearly 60% of its GDP from sectors like textiles, petrochemicals, auto, pharmaceuticals, and more. This growth is driven by three key factors: strategic location with access to over 40 ports supporting port based warehousing, a responsive and efficient government approval system, and strong domestic consumption in cities like Ahmedabad and Surat. The state’s pro-business environment and entrepreneurial spirit make it highly attractive for industry, though the low barriers to entry have also intensified competition, prompting us to be selective and focus on regions within Gujarat showing consistent, sustainable growth.”
THE COLD STORAGE REVOLUTION
Pandemic had been the major reason for India to see the Cold Storage warehouses scale up, which drastically differ from dry ambient warehousing. Godwitt Construction brought the first-time innovations to Gujarat in the development of its f irst cold storage facility in the state - India’s first frozen-category cold store using an Automated Storage and Retrieval System (ASRS), and a 33-meter-high industrial building equipped with a nitrogen-based firefighting system.
Dhaval Mehta, Founder, Godwitt Construction elaborates, “Traditionally, cold storage facilities in India have been basic, low-height structures used mainly for storing grains and vegetables, and the full cold chain, from refrigeration to packaging to last-mile delivery, is only now beginning to take shape. Just as industrial real estate has evolved from being referred to as “godowns” to becoming a key sector, cold storage too is entering a phase of transformation, supported by growing awareness, government incentives, and most importantly, its own inherent business potential, because ultimately, a viable business must stand on its own, with or without subsidies. When we built our first cold storage facility, there were no existing regulations for either high-rise industrial buildings above 15 meters or nitrogen-based fire systems, but the proactive state authorities collaborated with us to understand the future needs, and as a result, new approval frameworks were established to support such advancements.”
Policy Powers Growth
Indeed, the government policies and incentives have been have played a key role in supporting & accelerating warehousing development in Gujarat. As Bakir Gandhi, CMD, Crystal Group said, “Gujarat’s Industrial Policy (2020–2025), along with the Atma Nirbhar scheme, offers a range of incentives to promote warehousing and industrial development. These include interest subsidies on capital investment, an 8% CGST reimbursement on annual capital investment, exemptions on electricity duty, and, in some cases, stamp duty waivers. The state also offers a streamlined single-window approval system, and compared to other regions like Maharashtra, Karnataka, or Tamil Nadu, developers find Gujarat’s processes far quicker and more hassle-free, thanks to proactive governance and well-defined regulations. In Gujarat, the government allows industrial projects to begin construction even before formal approvals, as long as the work complies with DCR and related norms, creating a highly supportive and business friendly environment.”
THE CHALLENGES REMAIN
Land acquisition in India remains a complex and often confusing process, especially for foreign investors who struggle with fragmented ownership, unclear valuations, and regulatory hurdles. For warehousing sector, a key challenge is timing— foreign partners are unsure whether to invest early with higher risk or wait until the land is secured, potentially missing the opportunity. Bijal Chhatrapati, Partner, JSA Law, Advocates & Solicitors, explained, “Land acquisition is the starting point for any industrial or warehousing project, but it’s often a complex and messy process, riddled with challenges like land conversion issues and fragmented ownership, which can involve negotiating with multiple landholders and dealing with price escalation.
Many large companies end up relying on aggregators to acquire land, but that comes with risks – uncertainty around pricing, legal clarity, and hidden conditions, as illustrated by a French firm that unknowingly bought land without realizing manufacturing had not commenced within the mandated period, triggering legal complications. Another case involved a major e-commerce player whose warehouse operations were wrongly classified as a factory under the Factories Act, simply for sorting and dispatching pre-packed goods, leading to criminal prosecution before the matter was quashed in court.
The takeaway is clear: navigating land and regulatory compliance in India requires thorough legal due diligence, from verifying decades-old t itles to physically retrieving missing documents, making strong legal support absolutely essential.” Sharing his perspective on bottlenecks in utility connections, operating licenses, pollution control board permissions, or other compliances in Gujarat compared to other states, Sandesh Shirke, Business India Head & GM, Oppermann stated, “Coming from outside the industry, I chose to set up our safety belts manufacturing unit in Ahmedabad after evaluating Pune and Chennai, mainly due to its proximity to Mundra Port, strong logistics, and a business-friendly environment without labor union hurdles. Sanand’s growth as an automotive hub further reinforced the decision. While Gujarat offers single-window clearances, frequent human interventions and repeated physical inspections, especially for utilities—still slow down processes and need streamlining to improve ease of doing business.”
WAREHOUSING WITH VISION
Elaborating on how warehousing is emerging as a viable and attractive real estate asset class for institutional investors in the state, Rumit Parikh was of the view that many landowners think warehousing is as simple as building a structure and leasing it out, but institutional-grade development is far more complex. “Clients like Amazon and Reliance require full compliance with multiple regulations, like building approvals, fire safety, water use, and environmental clearances, all managed by experienced developers. Today’s MNCs prefer large, well-designed parks backed by institutional funds, with seamless infrastructure and long-term reliability, which only a few specialized players can truly deliver.”
Bakir Gandhi added, “It really comes down to how structured and accessible the system is, and how you navigate it. For example, when we were exploring warehousing opportunities in the U.S.—in states like New Jersey, Texas, and Florida—we assumed the approval process would be quick, maybe a week or so. But even after identifying a pre-approved 150-acre site on Highway 10 with truck access, we were informed by JLL that despite all the clearances, it would still take up to two years to get everything operational, which was quite eye-opening.”
Sandesh Shirke said, “As an occupier, both construction quality and competitive pricing are equally important, you can’t prioritize one without the other. Speaking from experience with setting up our manufacturing unit in Gujarat, where we operate as part of a global company with 12 plants worldwide, our facilities must meet high international standards, not just for operations but also to impress visiting clients, especially from Europe, who pay close attention to build quality and long-term infrastructure. Gujarat has offered a great balance: the construction quality has been impressive.
the pricing is far more competitive than other regions like Pune, making it a highly satisfying choice for manufacturers like us.” Daljit Singh stated, “We’re entering a period of uncertainty, especially with the arrival of Gen Z, whose preferences around buying, living, and interacting are still evolving, and they expect everything instantly. This shift will likely drive the rise of dark stores, in-city and multi-level warehousing, and an increase in cold storage, influenced by changing lifestyles and growing demand for ready-to-eat and frozen foods. In Gujarat, with its strategic port infrastructure, we’ll continue to see strong port logistics and manufacturing activity, alongside a growing focus on sustainable, Grade A warehousing to meet the evolving needs of the market.”
Taking the warehousing construction model, forward, Godwitt sees the market moving towards growing demand for organized worker housing in India. Dhaval Mehta said, “Blue-collar housing in India is still in its early stages, but there’s a growing recognition of its importance. Inspired by legacy models like Tata townships, companies like Foxconn are now building large-scale worker accommodations to improve living conditions and retain talent. With millions of migrant workers lacking proper housing, this segment is set to see strong momentum over the next decade, driven by industry and government collaboration. This is where the fast prefab and modular construction model can address the challenge of scale.”
