India Market Monitor Q4 2023 - Industrial & Logistics

The Indian economy continues to demonstrate resilience as it maintains its growth trajectory aided by a narrowing current account deficit and near-record foreign exchange reserves, among other factors. The Reserve Bank of India’s (RBI) upward revision of its FY 2023-24 GDP forecast also adds buoyancy to the overall business sentiment. In addition, record inflows are being witnessed in the financial markets by domestic and foreign investors alike. However, government and private expenditure, along with the manufacturing sector, are showing some signs of weakness.

With this backdrop, here is a review of key trends witnessed in the I&L sector in 2023:

-        Industrial & Logistics: Despite marginal tapering in leasing activity on a quarterly basis, the overall absorption in the I&L sector witnessed an increase in 2023 compared to the previous year. This was supported by the completion of historically high supply during the year. About 50% of this new supply was led by larger developers backed by institutional capital.

To delve deeper into our analysis of the I&L landscape in India in 2023, please click on the download button.