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Warehousing Market In India 2023
Modern warehouses in India provides value-added services such as consolidation and breaking up of cargo, packaging, labelling, barcoding and reverse logistics along with storing facilities., 9/13/2019 - On the basis of infrastructure, the Indian warehousing market is categorized into three types, namely

1. Lower stratum,

2. Middle stratum,

3. Higher stratum.

Technological advancements such as the use of Internet of things (IoT), cloud computing, big data analytics, robotics and automation, advanced imagers, and mobile thermal printers are revamping the warehousing market scenario in India. Several government initiatives such as the ‘Make in India’ program and efforts to set up industrial corridors have attracted significant international players to the warehousing market. Implementation of the goods and services tax (GST) had a positive effect on the Indian warehousing market due to diminishing state boundaries. Removal of interstate checkpoints, reduction in cargo movement time and replacement of multiple state and central level taxes are facilitating consolidation of warehouses.

Warehousing clusters across major Indian cities

Growth in Indian e-commerce, third-party logistics (3PLs), retail, fast-moving consumer goods (FMCG), auto and auto ancillaries, and chemical and pharmaceutical industries are expected to drive the demand for organized players in the Indian warehousing market. Bolstering infrastructure initiatives such as industrial corridors, and dedicated freight corridors, among others, are expected to augment demand in the Northern Capital Region (NCR), Mumbai Metropolitan Region (MMR), Hyderabad, Bengaluru and Kolkata.

Key growth factors

1. Growth in Indian e-commerce, 3PLs, retail, FMCG, auto and auto ancillaries, and chemical and pharmaceutical industries is expected to drive the demand for organized players in the Indian warehousing market.

2. Cashing in on the existing trend of the economy, there has been a sharp increase in automobile sales in the country. Increasing international trade is strengthening the growth of the warehousing market in India.


o Conversion of agricultural land for industrial and commercial purposes is a major challenge faced by the players operating in the Indian warehousing market. In India, the warehousing market is still at a nascent stage and is highly fragmented as compared to the United States (US) and European countries.

o Lack of warehousing standards and accreditation poses a major threat to the Indian warehousing industry mainly due to unavailability of quality and flexible warehousing spaces.

Key players

Container Corporation of India Ltd.,

Gati Ltd.

Mahindra Logistics Ltd.

are some of the major players that are operating in the Indian warehousing market.

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