Mumbai, 13 February (IANS). India’s total warehousing stock capacity has increased to 533.1 million square feet in 2024. Also, the contribution of Tier 2 and 3 cities has increased to 100 million square feet or 18.7 percent. This information was given in the report released on Thursday.
The report by real estate firm JLL reported that it represents a basic change in the country’s logistics sector towards the shift hub-end-spoke model, which improves the final-meal delivery capabilities imagined during the implementation of GST Does.
The report said that since the implementation of GST, there has been a strong growth in warehousing market in major cities of the country. Development is now expanding to emerging tier 2 and 3 cities as the logistics is now working on the hub and spoke model. Stocks of strong 100 million square feet were seen in 2024 in emerging cities, which is four times more compared to 2017.
Development in these emerging cities is inspired by many factors. The e-commerce boom, especially the ‘Click and by’ trend, is changing the warehousing market of India. This has increased the demand for supply centers close to the last consumers. Companies are also setting up small warehouses in these cities to improve delivery time and reduce logistics costs.
According to the report, these cities provide access to large locations due to low population density, which are ideal for warehouses near the consumption centers.
The development of the infrastructure initiative made by the government such as PM speed power, Bharatmala, Sagarmala, Udaan Yojana and Mal Dhilai corridors has adapted the distribution network. Programs like ‘Make in India’, ‘Digital India’ and National Logistics Policy have promoted favorable manufacturing ecosystems across the country.
Companies are setting their manufacturing facilities in these cities due to production-linked incentive (PLI) and design-linked incentive (DLI).
Yogesh Shevade, head of logistics and industrial in India at JLL, said, “It is expected to continue, which is inspired by the initiative of important infrastructure and it is connecting these emerging cities with major consumption centers. This rapid growth In the logistics sector, investors and developers are creating investment opportunities. This trend is not only giving a new shape to India’s logistics scenario, but also offering good returns for people ready to invest capital in this emerging market Still working.”
-IANS
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