Is India the Top Choice for Warehousing Expansion in APAC?
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Synopsis
As Asia-Pacific occupiers eye expansion, India stands out as the prime logistics destination. Discover how nearly 70% plan to enhance their warehousing capabilities in this thriving market, according to a recent survey. Uncover the trends fueling this growth in the logistics sector.
Key Takeaways
- India is the leading logistics destination for APAC occupiers.
- Nearly 70% of Asia-Pacific firms plan to expand their warehousing in India.
- Strong demand anticipated across multiple sectors.
- Over 80% of local firms expect business growth.
- Infrastructure development and sustainability are key growth drivers.
New Delhi, July 14 (NationPress) India has positioned itself as the leading destination for the logistics industry, with almost 70% of Asia-Pacific occupiers indicating plans to broaden their warehousing operations in the country within the next two years, as per a recent CBRE survey released on Monday.
This rising interest in India underscores a larger trend towards supply chain diversification, as businesses seek to decrease reliance on strategies that focus on a single market, according to the survey findings.
The report indicates that confidence in India's market potential is robust, with over 80% of occupiers based in India (including both Indian and international firms) intending to expand their warehousing capabilities over the next two years. Despite some short-term uncertainties, India remains a favored location for both global and local businesses.
Furthermore, almost 90% of respondents from India expressed intentions to grow their logistics operations over the next two to five years, reflecting a persistent long-term optimism.
The industry anticipates substantial demand in South-East Asia and India, spanning various sectors such as third-party logistics (3PL), e-commerce, engineering and manufacturing (E&M), automotive and auto ancillary, as well as fast-moving consumer goods (FMCG). The trend towards larger deals and modern facilities showcases occupiers’ transition towards future-ready, compliant, and environmentally sustainable warehousing, which paints an encouraging picture for the sector's growth.
The industrial and logistics sector is experiencing significant growth, propelled by institutional investment, favorable regulatory reforms, and strategic expansion into tier-II and tier-III cities. This positive trend is further supported by the rise of the 3PL segment, increased outsourcing, and a heightened emphasis on sustainability and compliance, as highlighted in the report.
Indian occupiers are demonstrating strong confidence in the logistics sector, with more than 80% expecting enhanced business performance in the coming two years.
This optimism stems from the country's rising consumption, improved 3PL networks, expanding modern logistics infrastructure, and the government's substantial infrastructure initiatives. Although the logistics market is still developing, it is undergoing rapid advancements in connectivity and cost-efficiency, especially in non-metro areas.
Anshuman Magazine, CBRE Chairman for the region, stated, “India’s logistics sector is in a transformative growth phase, driven by strong macroeconomic fundamentals, accelerated infrastructure development, and a maturing occupier ecosystem that increasingly prioritizes scalability, efficiency, and sustainability.”
“Our survey insights reaffirm India’s status as the most sought-after logistics destination in the region,” he added.
Point of View
It is clear that India's logistics sector is poised for significant growth. The survey findings reflect a strong confidence among occupiers, highlighting the importance of diversification and strategic investment. As the sector evolves, it is crucial for stakeholders to adapt and leverage the emerging opportunities.
NationPress
14/07/2025
Frequently Asked Questions
What percentage of APAC occupiers plan to expand in India?
Nearly 70% of Asia-Pacific occupiers are planning to expand their warehousing operations in India over the next two years.
What sectors are driving demand in India's logistics market?
The demand is driven by various sectors including third-party logistics (3PL), e-commerce, engineering and manufacturing, automotive, and fast-moving consumer goods (FMCG).
How confident are India-based occupiers about future growth?
Over 80% of India-based occupiers expect improved business performance in the next two years.
What factors contribute to the growth of the logistics sector in India?
The growth is fueled by strong macroeconomic fundamentals, accelerated infrastructure development, and a focus on sustainability.
What is the significance of the 3PL segment in logistics?
The rise of the 3PL segment is crucial as it enhances outsourcing capabilities and supports the overall growth of the logistics sector.
