India Emerges as Top Choice for Logistics Expansion in Asia-Pacific
Logistics Sector Growth in India
New Delhi, July 14: A recent survey by CBRE reveals that India has become the leading destination for logistics, with nearly 70% of businesses in the Asia-Pacific region planning to increase their warehousing presence in the country within the next two years.
This rising interest signifies a broader trend towards diversifying supply chains, as companies seek to minimize reliance on single-market operations.
The report indicates that over 80% of companies operating in India, including both local and international firms, are looking to expand their warehousing capabilities in the coming two years. Despite some immediate uncertainties, India continues to be a favored location for both domestic and global enterprises.
Furthermore, almost 90% of respondents based in India intend to enhance their logistics operations over the next two to five years, reflecting a sustained long-term optimism.
The logistics sector anticipates robust demand in South-East Asia and India across various segments, such as third-party logistics (3PL), e-commerce, engineering and manufacturing (E&M), automotive and ancillary services, as well as fast-moving consumer goods (FMCG). The trend towards larger deals and modern facilities indicates a shift towards future-ready, compliant, and environmentally sustainable warehousing, suggesting a positive outlook for the sector.
The industrial and logistics domain is experiencing significant growth, supported by institutional investments, favorable regulatory changes, and strategic expansion into tier-II and tier-III cities. This growth trajectory is further bolstered by the rise of the 3PL sector, increased outsourcing, and a heightened focus on sustainability and compliance.
Indian businesses are showing strong confidence in the logistics sector, with over 80% anticipating better business outcomes in the next two years.
This optimism stems from the country's increasing consumption, improved 3PL networks, expanding modern logistics infrastructure, and substantial government investment in infrastructure. Although the logistics market is still developing, it is rapidly enhancing connectivity and cost-effectiveness, especially in non-metro areas.
Anshuman Magazine, CBRE's 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 focused on scalability, efficiency, and sustainability.”
He further emphasized, “The findings from our survey reinforce India’s status as the top logistics destination in the region.”