30 industrial, warehousing hotspots emerge amid infra, policy push: Report

Colliers identifies 30 industrial and warehousing hubs -- 8 prime, 12 emerging and 10 nascent -- across India, driven by infrastructure growth, manufacturing expansion and strong policy support

India’s industrial and warehousing sector is set for strong long-term growth, backed by infrastructure expansion, manufacturing push and policy support. A new report by Colliers, titled ‘India’s emerging industrial & warehousing corridors: Mapping the next growth frontier’ highlights how new industrial corridors, logistics parks and smart cities are reshaping the country’s logistics landscape and opening up fresh opportunities beyond traditional metros.

 

According to the report, the sector is entering a new phase of expansion driven by supply chain changes, rising consumption, technology adoption and government-led infrastructure development.

 

30 high-potential hubs mapped across India

 

Colliers has identified 30 high-potential industrial and warehousing hotspots across the country, including Ahmedabad, Bengaluru, Chennai, Delhi-NCR among others, after assessing over 100 cities on parameters such as connectivity, manufacturing presence, infrastructure readiness, MSME activity and availability of Grade A space.

   

Eight prime hubs are already established industrial markets with strong demand and supply depth. These include Ahmedabad, Bengaluru, Chennai, Delhi-NCR, Hyderabad, Kolkata, Mumbai and Pune. The report said these cities are expected to continue attracting large occupiers and institutional investments.

 

As many as 12 emerging hubs such as Jaipur, Lucknow, Coimbatore, Surat, Indore and Visakhapatnam are likely to see faster growth over the next few years as industrial corridors, logistics parks and multimodal hubs near completion.

 

Other emerging hubs include:

• Bhopal

• Bhubaneswar

• Kochi

• Nashik

• Patna

• Rajpura

 

The report states that 10 nascent hubs including Nagpur, Guwahati, Raipur, Vijayawada and Jammu are at an early stage. Growth in these markets will depend on infrastructure completion, policy support and investor confidence. Over time, some of these cities could move into the emerging category.

 

Nascent hubs include:

• Amravati

• Hosur

• Jamshedpur

• Kanpur

• Prayagraj

 

The geographical spread of these hubs shows balanced growth across north, south, east, west and central India.

 

Infrastructure push to accelerate growth

 

India’s industrial growth story is closely linked to major national programmes such as the National Industrial Corridor Development Programme and the PM GatiShakti National Master Plan. Currently, 11 industrial corridors are under various stages of development. Five dedicated freight corridors are being built to improve cargo movement. Around 20 industrial smart cities are being developed along these corridors.

 

In addition, 35 multi-modal logistics parks (MMLPs) have been sanctioned, with several already approved. Seven PM MITRA textile parks are planned across India. Under the Sagarmala programme, over 800 projects have been identified, with 200 already completed. Eight international airports are also under construction, the report states.

 

These projects are expected to improve connectivity, reduce logistics costs and make modern warehousing more viable across regions.

 

Vijay Ganesh, managing director, industrial & logistics services, Colliers India, said, “The next wave of industrial & warehousing growth will be strengthened by expanding industrial & freight corridors, multimodal logistics parks, smart industrial cities, and major sea–airport expansion projects."

 

Demand to cross 50 million sq ft by 2030

 

Demand is being driven by third-party logistics (3PL) firms, automobiles, engineering, FMCG and e-commerce players. The push for domestic manufacturing and improved regional connectivity is expected to further increase leasing activity.

 

By 2030, annual Grade A space uptake across the top eight cities is expected to cross 50 million square ft. At the same time, new opportunities are likely to emerge in smaller cities. Grade A warehousing stock across the top eight cities is projected to reach around 500 million square feet by 2030 and could potentially scale up to nearly 2 billion square feet by 2047, the report states.

 

Vimal Nadar, national director & head, research, Colliers India, said: “Policy driven strategic focus on domestic manufacturing and infrastructure development will remain pivotal in the ongoing transformation of India’s industrial & warehousing market in terms of leasing volumes, stock availability and quality of offerings..."

 

With strong policy backing and infrastructure upgrades, India’s industrial and warehousing sector is expected to become more efficient, technology-driven and regionally balanced in the coming decades, the report said.