High-activity industrial clusters are expected to account for nearly 70–80% of India’s Grade A industrial and warehousing demand and supply in the coming years, according to a report by Colliers India. The report highlighted that Chennai leads the country with three major high-activity warehousing clusters, reflecting the city’s growing importance in India’s logistics and manufacturing ecosystem.
High-activity clusters are defined as micro markets that have recorded cumulative demand and supply exceeding 4 million sq ft since 2021. These hubs are emerging as the core drivers of India’s logistics expansion and industrial infrastructure growth.
Key Highlights
- High-activity clusters expected to command 70–80% of warehousing demand
- India’s Grade A warehousing stock reached nearly 300 million sq ft
- 13 major clusters account for around 75% of demand and fresh supply since 2021
- Chennai leads with three high-activity industrial clusters
- Bhiwandi remains India’s largest warehousing hub with 42 million sq ft stock
- Growth driven by logistics parks, freight corridors and industrial infrastructure
- Rising demand from e-commerce, 3PL, automobile and manufacturing sectors
- Tier II cities like Coimbatore, Jaipur and Bhubaneswar emerging as new logistics hubs
Infrastructure Driving Warehousing Growth
The report noted that infrastructure development remains a major growth driver for industrial and warehousing demand. Projects such as dedicated freight corridors, logistics parks, expressways and industrial corridors are strengthening connectivity and improving supply-chain efficiency across regions.
Key industrial hubs include:
- Chennai
- Delhi NCR
- Bengaluru
- Pune
- Mumbai
- Hyderabad
Southern clusters such as Oragadam and NH16 in Chennai are witnessing strong demand due to seaport access and improved connectivity through the Bengaluru-Chennai Expressway.
Emerging Tier II Markets Gain Momentum
The report also highlighted growing opportunities in emerging Tier II markets including:
- Bhopal
- Bhubaneswar
- Coimbatore
- Jaipur
These cities are expected to become important supply-chain and distribution centres as e-commerce, manufacturing and export-oriented industries continue to expand across India.
Industry experts believe the rapid expansion of institutional-grade warehousing assets and integrated logistics infrastructure will further strengthen India’s position as a major logistics and manufacturing hub in the Asia-Pacific region.
