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Category: Logistics & Supply Chain News

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Industrial and Logistics Hubs to Dominate India’s Warehousing Growth

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.
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Bharat Maritime Insurance Pool of USD 1.5 billion now operational

India is planning large multimodal logistics hubs to strengthen cargo connectivity, improve supply-chain efficiency and support growing domestic and international trade. The proposed projects will integrate road, rail, port and inland waterways infrastructure to enable faster and seamless cargo movement across the country.
The initiative has attracted strong interest from global container shipping lines and logistics operators, who view the projects as a major step toward enhancing India’s logistics competitiveness and transport efficiency.

Key Highlights

  • Multimodal hubs to connect road, rail, ports and inland waterways
  • Projects aimed at improving cargo movement and reducing transit bottlenecks
  • Industrial clusters and export-oriented businesses expected to benefit
  • Global logistics and shipping companies showing growing interest
  • Infrastructure projects aligned with India’s logistics modernisation plans
  • Increased investment expected in warehousing and freight handling
  • Integrated transport solutions to strengthen supply-chain resilience
Officials stated that the logistics hubs will improve connectivity for manufacturing centres, industrial corridors and export businesses while supporting efficient freight transportation across regions. Industry experts believe the projects could position India as a leading regional logistics and manufacturing hub while encouraging greater private sector participation in warehousing, integrated transport and supply-chain infrastructure development.
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Adani Ports Launches Weekly Rail Service from ICD Patli to Pipavav Port, Boosting Multimodal EXIM Connectivity

Adani Ports and Special Economic Zone Ltd (APSEZ) has launched a new weekly rail service connecting ICD Patli to Pipavav Port, further strengthening its multimodal logistics network and export–import (EXIM) supply chain capabilities.
The new service enhances direct rail connectivity between North India’s industrial clusters and a key western gateway port, offering exporters and importers a more predictable and efficient cargo movement option.

Strengthening North–West India Trade Links

Designed to simplify cargo planning, the weekly rail service provides end-to-end connectivity that helps reduce transit uncertainty and improve schedule reliability—two critical factors for EXIM customers operating in time-sensitive global supply chains.
With ICD Patli serving as a major inland logistics hub for the NCR and surrounding manufacturing regions, the dedicated rail link is expected to:
  • Improve cargo evacuation efficiency
  • Support faster turnaround for exports and imports
  • Enable smoother port–hinterland integration

Part of a Broader Multimodal Strategy

APSEZ stated that the initiative aligns with its broader strategy of integrating ports, rail, and inland logistics infrastructure to create seamless and resilient supply chain ecosystems.
By combining port operations with rail connectivity and inland container depots, Adani Ports aims to deliver logistics solutions that balance speed, reliability, and scale, helping Indian businesses remain competitive in global trade lanes.

Key Highlights at a Glance

  • New weekly rail service between ICD Patli and Pipavav Port
  • Improved access for North India’s industrial and manufacturing clusters
  • Reduced transit uncertainty and enhanced schedule reliability
  • Stronger EXIM connectivity to western maritime trade routes
  • Supports APSEZ’s integrated multimodal logistics vision

What This Means for EXIM Customers

The service is now operational and available to exporters and importers seeking streamlined, rail-led connectivity between northern manufacturing centres and Pipavav Port’s maritime network—especially beneficial for customers looking to optimise costs while maintaining delivery reliability.

How CargoNet Complements Multimodal Rail–Port Connectivity

As rail-linked port services expand, digital coordination becomes essential. Platforms like CargoNet help logistics providers and freight forwarders manage rail and sea movements, documentation, billing, and real-time cargo visibility on a single system—ensuring better planning, fewer delays, and tighter control across multimodal EXIM supply chains.
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India’s Cold Chain Market Poised for Five-Fold Growth to $75 Billion by 2033

India’s cold chain industry—long considered the invisible backbone of food and pharmaceutical supply chains—is entering a decisive growth phase. As consumption patterns shift and demand for temperature-sensitive products surges, cold logistics is fast becoming one of India’s most critical infrastructure priorities.
According to a study by market intelligence platform Grand View Horizon, India’s cold chain market is expected to expand nearly five times, growing from around $13 billion today to $75 billion by 2033. The sector is projected to register close to 25% compound annual growth, driven by rising consumption of perishables, pharmaceuticals, vaccines, biologics, and e-grocery services.

From Behind-the-Scenes to Centre Stage

Despite its growing importance, India’s cold chain ecosystem has historically remained fragmented, capacity-led, and under-digitised. A report by Amicus Growth Advisors notes that increasing demand for dairy, fresh agricultural produce, meat, and high-value medicines is now colliding with outdated infrastructure and inconsistent service standards.
While billions of dollars are flowing into cold storage facilities, transport fleets, and warehousing, the report cautions that capacity expansion alone will not unlock sustainable value.
“The real opportunity lies in building integrated, end-to-end cold logistics platforms,” the report states, highlighting that technology-led, compliance-driven, and data-enabled operations will attract higher valuations and long-term capital.

Why Cold Chains Are Now Strategic Infrastructure

Sanjeev Jain, Managing Partner at Amicus Growth Advisors, describes cold chain logistics as the thin line between value creation and value erosion.
“India feeds more people than any other democracy, supplies vaccines globally, and produces one of the most diverse food baskets in the world. Yet, between the farm, factory, hospital, and home, value quietly melts away,” said Sanjeev Jain.
Jain stressed that cold chains are no longer just physical assets but economic enablers, directly influencing farmer incomes, food safety, export competitiveness, and pharmaceutical efficacy.

“For agriculture, cold chains prevent distress sales and improve price realisation. For dairy, they enable freshness at national scale. For pharmaceuticals and vaccines, they are the difference between regulatory compliance and catastrophic failure,” he added.

Consumption, Compliance, and Capital Are Reshaping the Sector

The report highlights that India’s consumption landscape is rapidly evolving:
  • Processed and ready-to-eat foods are moving into the mainstream
  • Organised retail, quick-service restaurants (QSRs), and e-grocery platforms are expanding aggressively
  • Demand for biologics, vaccines, and temperature-sensitive drugs is rising sharply
At the same time, regulatory scrutiny is intensifying, customers are less tolerant of failures, and investors are becoming more selective—favouring operators who can deliver reliability, transparency, and end-to-end control.

Key Highlights

  • Market Size: $13 billion today → $75 billion by 2033
  • Growth Rate: ~25% CAGR
  • Sector Shift: From standalone cold storage to integrated cold chain platforms
  • Competitive Advantage: Technology, compliance, data visibility, and execution reliability
  • Future Leaders: Players partnering with global integrators and building end-to-end ecosystems

The Road Ahead

Covering the full cold chain spectrum—from temperature classifications and growth drivers to policy support such as Kisan Sampada subsidies and evolving regulatory frameworks—the report concludes that the next phase of growth will be defined by platform-led cold logistics models.
Those who secure reliability, leverage data-driven insights, and deliver consistent quality across the supply chain are set to define India’s emerging cold chain renaissance, supported by digital logistics platforms like CargoNet that enable end-to-end visibility, compliance, and intelligent cold chain control.
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Sagarmala in Motion: 272 Road & Rail Projects Drive India’s Port-Led Development

India’s ambitious Sagarmala Programme continues to gain momentum with 272 critical road and rail connectivity projects underway, Minister of Ports, Shipping and Waterways Sarbananda Sonowal informed the Rajya Sabha on Tuesday.
These projects, spanning implementation by the Ministry of Road Transport and Highways, Ministry of Railways, major ports, and private sector players, form the backbone of India’s drive toward port-led infrastructure growth.

Project Progress Snapshot:

  • Total projects: 272
  • Completed: 74
  • Under implementation: 67
  • Under development: 131
A National Sagarmala Apex Committee leads the charge on policy direction and inter-agency coordination. Parallelly, Maritime States Development Council (MSDC) meetings are fostering alignment across central and state bodies.

Investment & Mode of Execution:

  • 839 total Sagarmala projects identified 272
  • Estimated value: ₹5.79 lakh crore (~₹5.8 trillion)
  • Of these,
  • 119 projects worth ₹2.42 lakh crore are being executed in Public-Private Partnership (PPP) mode
  • Remaining projects are under government-funded EPC (Engineering, Procurement & Construction) mode
  • Governance & Tech-Driven Transformation:
  • To ensure faster rollouts and transparency:
  • The Sagarmala Funding Guidelines have been revised for better financial oversight and efficiency.
  • An MoU has been signed with C-DAC to establish a Digital Centre of Excellence (DCoE), focused on digital transformation in ports and shipping.
  • Digital Advancements:
  • Launch of SAGAR SETU – a digital platform to:
  • Enhance EXIM service efficiency
  • Reduce vessel and cargo documentation time
  • Promote paperless trade and ease of doing business
  • Introduction of a standardised Scale of Rates (SOR):
  • Ensures uniformity in service definitions
  • Provides transparent port tariff structures
This update reflects India’s commitment to modernizing its maritime logistics ecosystem through a combination of infrastructure development, policy reforms, and technology integration. Stay tuned for more insights as we track progress across the Sagarmala corridor.
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Industrial & Warehousing Space Leasing Soars 63% in H1 2025 — Sets New Record: CBRE

India’s industrial and warehousing sector is on a tear — leasing activity hit an all-time high of 27.1 million sq. ft. in the first half of 2025, marking a 63% year-on-year surge, according to CBRE’s latest report. This explosive growth reflects the booming demand from 3PL providers and e-commerce giants, who are rapidly scaling operations to meet rising consumer expectations and enhance supply chain efficiency.

Key Highlights:

  • Record Leasing Volume:
  • 27.1 million sq. ft. leased across 8 major Indian cities in H1 2025 — highest ever recorded.
  • Demand Drivers:
  • Third-Party Logistics (3PL): Accounted for 32% of leasing.
  • E-commerce Players: Took up 25%, underscoring digital retail’s supply chain expansion.
  • Top Performing Markets:
  • Delhi-NCR led with 7.3 million sq. ft. leased.
  • Bengaluru: 4 million sq. ft.
  • Hyderabad: 3.6 million sq. ft.
  • Kolkata: 3.3 million sq. ft.
  • Other active markets: Mumbai, Chennai, Pune, and Ahmedabad.
  • Supply Additions:
  • 16.7 million sq. ft. of new warehousing space added.
    Bengaluru, Chennai, and Mumbai contributed 57% of the new supply.
  • What’s Driving the Trend?
  • Rising consumer expectations.
  • Supply chain digitisation and consolidation.
  • Shift toward premium, tech-enabled, and sustainable facilities.
  • Growing warehousing demand in tier-II cities.
  • Outlook for H2 2025:
  • CBRE forecasts continued leasing momentum, driven by 3PL, e-commerce, and retail sectors.
Insight: The logistics landscape in India is undergoing a structural transformation — with warehousing demand expanding both in scale and geography. For businesses, this is the time to rethink location strategies, adopt automation, and invest in scalable infrastructure.
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Gujarat Nears Completion of Logistics Master Plans for 8 Key Cities

The Gujarat government is close to finalizing comprehensive logistics master plans for eight major cities and the entire state, a major step toward streamlining industrial transportation needs.
State Industries Minister Balvantsinh Rajput reviewed progress in a recent meeting held in Gandhinagar, where the Gujarat Infrastructure Development Board (GIDB) presented updates on ongoing infrastructure initiatives.

Key Highlights:

  • Cities Covered: Ahmedabad, Gandhinagar, Vadodara, Surat, Rajkot, Bhavnagar, Jamnagar, and Junagadh.
  • Statewide Logistics Plan: Nearing finalization to align with industrial demands.
  • Project Worth: Infrastructure initiatives valued at ₹500+ crore under review.
  • Nodal Role: GIDB serves as the state's key agency under the Project Monitoring Group (PMG) framework to ensure project execution.
  • Tech Push: Development of a Unified Logistics Interface Platform (ULIP) database directed.
  • National Ranking Focus: Emphasis on improving Gujarat’s standing in the LEADS (Logistics Ease Across Different States) survey.
  • PM Gati Shakti Integration: Updates shared on its implementation across Gujarat.
Minister Rajput urged officials to accelerate progress, especially in aligning these initiatives with the broader goal of lowering logistics costs and enhancing ease of doing business in Gujarat.
GIDB CEO P Swaroop also briefed on the development of Special Investment Regions (SIRs) and other strategic projects under the PM Gati Shakti National Master Plan.
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India’s Industrial & Warehousing Demand Hits Record High in H1 2025

India’s industrial and warehousing sector witnessed unprecedented growth in the first half of 2025, with leasing activity touching 20 million sq ft — a 33% year-on-year increase, according to a new report by Colliers India.

The surge is being driven by strong demand across sectors like Third-Party Logistics (3PL), e-commerce, automobiles, and engineering, particularly in top metro cities.

Key Highlights:

  • Record-breaking demand:
  • H1 2025 witnessed 20 million sq ft of industrial and warehousing leasing across India’s top 8 cities — a 33% increase YoY.
  • Delhi-NCR & Chennai lead the pack:
  • Together, these two cities contributed nearly 50% of total leasing activity.
  • Top-performing cities:
  • Delhi-NCR
  • Chennai
  • Mumbai
  • Bengaluru
(Each recorded over 2 million sq ft of demand)
  • 3PL dominance:
  • Third-party logistics players contributed to 32% of total leasing, continuing to be the sector's growth engine.
  • Sector-wise traction:
  • 3PL: ~6.5 mn sq ft
  • Engineering, e-commerce, and automobile: Each contributed 2–4 mn sq ft
  • Retail sector also showed significant interest
  • Micro-market hotspots:
  • Bhiwandi (Mumbai): 3.1 mn sq ft
  • Oragadam (Chennai): 1.5 mn sq ft
  • Retail sector also showed significant interest
  • Q2 2025 – The strongest yet:
The second quarter alone saw 11 million sq ft of leasing — the highest quarterly absorption in recent years, marking a 52% YoY growth.
“While 3PL players continue to lead, engineering, e-commerce, and automobile segments are steadily gaining share in Grade A warehousing demand,” — Vimal Nadar, National Director & Head of Research, Colliers India
“The growth trajectory looks solid. We expect robust performance in the upcoming quarters of 2025,” — Vijay Ganesh, MD, Industrial & Logistics Services, Colliers India
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India Commits ₹5,000 Cr ($583M) to Boost Northeast Waterways

In a major push to enhance connectivity and logistics in the Northeast, the Government of India is investing ₹5,000 crore ($583.1 million) to develop inland water transport (IWT) infrastructure in the region. Union Minister for Ports, Shipping, and Waterways, Mr. Sarbananda Sonowal, announced the initiative, highlighting the Centre’s focused efforts to unlock the region’s trade potential and improve regional integration.

Over the past two years, the Ministry has already initiated projects worth ₹1,000 crore ($116.6 million), of which ₹300 crore ($35 million) worth of work has been completed. The remaining ₹700 crore ($81.6 million) is expected to be completed by 2025.

Key Highlights:

  • Massive ₹5,000 Cr investment to develop Northeast’s waterways sector.
  • ₹1,000 Cr projects already underway; ₹300 Cr completed and ₹700 Cr to be completed by 2025.
  • Permanent cargo terminals planned at:
  • Pandu
  • Jogighopa
  • Dhubri
  • Bogibeel
  • Karimganj
  • Badarpur
  • Infrastructure upgrades include:
  • Year-round fairway dredging
  • Year-round fairway dredging
  • Tourist jetties worth ₹299 Cr ($23.3M)
  • Heritage restoration in Dibrugarh
  • Expansion of IWT in Mizoram, Nagaland, and Tripura with a focus on water-based tourism.
  • Indo-Bangladesh Protocol Route (IBPR) is being leveraged to:
  • Create new trade corridors
  • Bypass the congested Siliguri Corridor
  • Boost regional trade under the Atmanirbhar Bharat vision
This renewed focus on inland waterways aligns with India’s broader push to modernize multi-modal transport, reduce logistics costs, and strengthen border trade with Bangladesh and Southeast Asia.
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India Plans 200 Gati Shakti Cargo Terminals Along Rail Freight Corridors.

In a landmark move to bolster logistics and maritime infrastructure, the Indian government is planning 200 Gati Shakti Cargo Terminals to be developed along the country’s expanding Dedicated Freight Corridors (DFCs). This initiative is part of a broader multi-modal push under the PM Gati Shakti National Master Plan aimed at integrating transport networks, streamlining freight movement, and reducing logistics costs.
In parallel, India is strengthening its maritime ambitions through a strategic partnership with South Korea’s HD Hyundai. Earlier this month, HD Korea Shipbuilding & Offshore Engineering (HD KSOE) — the intermediate shipbuilding arm of HD Hyundai — signed a comprehensive Memorandum of Understanding (MoU) with Cochin Shipyard Limited (CSL), India’s largest state-owned shipbuilder.

Key Highlights from the MoU:

  • Joint Shipbuilding Efforts: CSL and HD Hyundai will collaborate on ship design, procurement, and production technologies.
  • Skill Development & Quality: Focus on improving productivity, quality assurance, and workforce training in shipyards.
  • Global Bids: The long-term objective is to jointly bid for international shipbuilding orders by leveraging Korea’s advanced technology and India’s cost-competitive manufacturing ecosystem.
  • Boost to ‘Make in India’ & Blue Economy: This alliance is aligned with India's plan to own 1,000 commercial vessels over the next decade.

Why This Matters for the Logistics Sector:

  • 200 Cargo Terminals will significantly decongest highways, improve first-mile and last-mile connectivity, and enable faster multimodal freight movement.
  • The India-Korea shipbuilding partnership positions India to become a global shipbuilding hub, enhancing the country’s ability to service and build vessels critical to trade.
  • Both developments support India’s larger vision of becoming a $5 trillion economy with world-class infrastructure and a robust blue economy.
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