INFRASTRUCTURE DEVELOPMENT IS THE BACKBONE OF WAREHOUSING SECTOR

Indian government policies are encouraging for the warehousing and logistics sector. Schemes like Pradhan Mantri Gram Sadak Yojna, Industrial & Dedicated Freight Corridors, Bharatmala and Sagarmala projects, Jal Marg Vikas, and UDAN are enabling the sector’s growth. In the long term, logistics and warehousing will be one of the key beneficiaries of the country’s march towards becoming a global manufacturing hub.

In addition, the implementation of Goods & Services Tax (GST) and the surge in e-commerce are the biggest drivers of Indian logistics and warehousing sector growth over the past few years. The extension of the Production Linked Incentive Scheme (PLI) would also give a further boost to the sector.

Furthermore, the PM Gati Shakti scheme, the expansion of the National Highway Network by 25,000 km in 2022-2023 and the National Infrastructure Plan (NIP) encompassing 8200 projects are moves in the right direction for inter-state co-ordination and unification that will reduce logistics costs.

We are now witnessing highest ever international investments coming into the Indian warehousing space. The hub and spoke model in this segment will gain further traction as during Covid we saw the need for delivery centres to be near the consumption hubs.

I believe technology will be the game-changer for the warehousing assets. The new-age organized warehouses are automated with IoT capabilities, making them an important part of India’s logistics sector. The role of 3PL providers has been undeniable in making this sector emerge stronger.

Given the remarkable growth during last two years, the sector has established itself as one of the most resilient asset classes. Grade-A warehouses demand has witnessed a major uptick that continues to bring significant capital.

REDUCING THE COST OF TRANSPORTATION AND DEVELOPING LOGISTICS INFRASTRUCTURE IN THE COUNTRY WILL MAKE US COMPETITIVE WITH OTHER ASIAN COUNTRIES AND POSITION US TO BE THE GLOBAL WAREHOUSING HUB