India’s manufacturing sector to hit 25 per cent of GDP by 2035

India’s industrial & warehousing market is entering a phase of accelerated transformation driven by policy push, infrastructure augmentation, evolving consumer behaviour, supply‑chain recalibration and rapid technology adoption. Further, India’s manufacturing sector, currently contributing about 17% of the country’s GDP, is projected to increase its share to approximately 25% by 2035.

Against this backdrop, the industrial & warehousing sector is emerging as a high‑growth frontier, supported by rising demand for modern & efficient warehouses and strong traction in institutional investments, according to Colliers’ report on India’s emerging industrial and warehousing corridors.

Colliers identified multiple high-potential cities. Over 100 cities were assessed to determine their attractiveness for industrial & warehousing growth over the next 5-6 years and the list was eventually shortlisted to 30 high-potential cities and clustered into prime, emerging and nascent hubs, reflecting varying levels of ecosystem maturity and readiness for future growth. The geographical spread of 30 identified high potential industrial & warehousing hotspots highlights equitable growth across the Northern, Southern, Western, Eastern, and Central regions of the country.

“The next wave of industrial & warehousing growth will be strengthened by expanding industrial & freight corridors, multimodal logistics parks, smart industrial cities, and major sea–airport expansion projects. Notably, the recent budget has prioritized economic growth dispersion by emphasising the need for enhancement in domestic manufacturing capabilities. Additionally, the allocation of INR 5,000 crore per city economic regions (CER) and focused interventions across key sectors such as life sciences, electronics, semiconductors, chemicals, rare earth minerals, textiles etc. can boost long-term warehousing growth in the established markets and simultaneously open up investments in multiple emerging and nascent markets”, says Vijay Ganesh, Managing Director, Industrial & Logistics Services, Colliers India.

Strategic corridors, industrial smart cities & MMLPs to drive infra-augmentation and Grade A warehousing space uptake India’s industrial & warehousing market is evolving rapidly, driven by cohesive national policies that prioritise the expansion of industrial & freight corridors, multimodal logistics parks, dedicated rail networks, expressways and ports. Key flagship initiatives such as the National Industrial Corridor Development Programme (NICDP) and the PM GatiShakti National Master Plan are central to this transformation. Grade A stock likely to cross 500 million sf by 2047 India’s industrial & warehousing sector is set for accelerated growth, supported by strong demand across 3PL players and segments such as automobiles, engineering, FMCG, e-commerce etc.

Demand traction will be particularly driven by government focus on domestic manufacturing and enhancements in regional connectivity through upcoming expressways, freight & industrial corridors, logistics parks, greenfield sea & airports etc.

In fact, by 2030, annual Grade A space uptake is expected to breach 50 million sq ft across the top eight cities (Prime hubs) and simultaneously create newer investment opportunities in multiple emerging as well as nascent markets.

“Policy driven strategic focus on domestic manufacturing and infrastructure development will remain pivotal in the ongoing transformation of India’s industrial & warehousing market in terms of leasing volumes, stock availability and quality of offerings.

India’s Grade A warehousing stock, across the top 8 cities is projected to cross 500 million sq ft by 2030 and could potentially scale up to 2 billion sq ft by 2047, supported by steadfast implementation of corridor development programmes, manufacturing expansion and logistics modernisation.

More importantly, the scale up is likely to expedite balanced regional growth and position multiple smaller cities as new growth frontiers of India’s industrial & warehousing market.”, says Vimal Nadar, National Director & Head, Research, Colliers India.

I am in the Gulf and own a house in India and my wife also owns one. If we sell both and buy a larger unit, how will it be treated for capital gains purposes. Pratab Shetty, Sharjah.

Neither of you violate the condition of owning more than one unit at the time of selling your investments, and you may pool your sale proceeds to invest in a larger new unit. Both of you are eligible to claim exemption under section 54F in proportion to the contribution.

We are in the process of selling our deceased father’s property in India with two legal heirs and I am located in the Gulf. As I am unable to travel, can a power of attorney resolve the situation to close the deal? Jeyasuresh, Dubai.

Yes. You will have to get attestation of the specific power of attorney in the Gulf with the Indian consulate. You may grant PoA to either of the two legal heirs in India for the purpose of executing and registration of sale deed. Once it is received in India, it has to be stamped and signed with the appropriate stamp duty.