Article
Navigating India's Logistics Landscape: Insights and Opportunities
July 21, 2025
India's Industrial & Logistics (I&L) sector is currently experiencing a period of robust growth and transformation. Propelled by accelerated formalization, significant institutional investments, and a maturing regulatory environment, the sector is strategically diversifying beyond traditional top-tier cities into emerging Tier II and III markets. This expansion is further fueled by increased logistics outsourcing, the rise of third-party logistics (3PL) providers, and a heightened industry-wide focus on compliance and sustainability.
Optimism abounds within the industry. A recent CBRE survey conducted revealed a strong positive sentiment. A remarkable 82% of these respondents anticipate an improvement in their business performance over the next 24 months. This confidence is underpinned by several factors. Furthermore, investor confidence remains high, with India's I&L sector attracting a substantial USD 1 billion in investments in 2024, nearly half of which came from foreign investors. This robust investment trend is expected to continue through 2025-26. The logistics sector itself demonstrated strong performance in 2024, witnessing an absorption of over 39 million sq. ft., with leasing activity projected to remain strong in the coming years.
This buoyant outlook translates directly into ambitious expansion plans. An impressive 81% of Indian respondents expressed their intent to expand their warehousing portfolio within the next two years. More broadly, approximately 70% of Asia Pacific (APAC) occupiers surveyed are looking to expand their warehousing footprint in India over the same period, driven by a strategic move towards supply chain diversification to mitigate over-reliance on single markets. India's I&L sector has been a magnet for investment, attracting USD 5,200 million between 2019 and Q1 2025. This strong demand is anticipated across diverse sectors, including 3PL, e-commerce, electronics and manufacturing (E&M), auto and auto ancillary, and fast-moving consumer goods (FMCG).
A notable trend observed is the "flight to quality," where a significant 84% of respondents are prioritizing better amenities and services when selecting warehouses. This underscores a growing demand for advanced, well-equipped logistics spaces that can support efficient and modern supply chain operations.
Looking ahead, India's logistics sector is poised for continued growth, driven by fundamental strengths and an increasing emphasis on strategic and operational efficiencies. While challenges like cost management and competition will remain, the overall confidence and expansion appetite among occupiers signal a resilient and evolving landscape.
Optimism abounds within the industry. A recent CBRE survey conducted revealed a strong positive sentiment. A remarkable 82% of these respondents anticipate an improvement in their business performance over the next 24 months. This confidence is underpinned by several factors. Furthermore, investor confidence remains high, with India's I&L sector attracting a substantial USD 1 billion in investments in 2024, nearly half of which came from foreign investors. This robust investment trend is expected to continue through 2025-26. The logistics sector itself demonstrated strong performance in 2024, witnessing an absorption of over 39 million sq. ft., with leasing activity projected to remain strong in the coming years.
This buoyant outlook translates directly into ambitious expansion plans. An impressive 81% of Indian respondents expressed their intent to expand their warehousing portfolio within the next two years. More broadly, approximately 70% of Asia Pacific (APAC) occupiers surveyed are looking to expand their warehousing footprint in India over the same period, driven by a strategic move towards supply chain diversification to mitigate over-reliance on single markets. India's I&L sector has been a magnet for investment, attracting USD 5,200 million between 2019 and Q1 2025. This strong demand is anticipated across diverse sectors, including 3PL, e-commerce, electronics and manufacturing (E&M), auto and auto ancillary, and fast-moving consumer goods (FMCG).
A notable trend observed is the "flight to quality," where a significant 84% of respondents are prioritizing better amenities and services when selecting warehouses. This underscores a growing demand for advanced, well-equipped logistics spaces that can support efficient and modern supply chain operations.
Looking ahead, India's logistics sector is poised for continued growth, driven by fundamental strengths and an increasing emphasis on strategic and operational efficiencies. While challenges like cost management and competition will remain, the overall confidence and expansion appetite among occupiers signal a resilient and evolving landscape.