CARGOCONNECT-JUNE2026 - Flipbook - Page 54
SPECIAL FEATURE : MEGA LOGISTICS CLUSTERS
I
ndia’s warehousing market is undergoing a
tectonic transformation, largely driven by
rapid infrastructure expansion, e昀케cient
integration of emerging technologies, and
a slew of forward-looking governance
initiatives and policies. The surge in
e-commerce and the unprecedented
growth in the manufacturing sector
is further fuelling this transformation.
However, the question arises, what transformation are we actually referring to?
The answer lies in a fundamental shift
in how people view and utilise warehousing within
the broader supply chain ecosystem. Warehousing is
no longer just a storage function near urban areas. It
is certainly evolving into a strategic network focussed
on speed, agility, multimodal connectivity, improved
inventory management, manufacturing support, and
the easy movement of cargo across the country.
This shift has led to the rise of large logistics
ecosystems within strategic nodes and integrated
distribution corridors nationwide. Typically positioned
along industrial corridors, highways, freight terminals,
and key consumption centres, these clusters are transforming the movement of cargo. One major reason for
their emergence is that they enable faster turnaround
times and strengthen regional distribution e昀케ciency. At
the same time, they support quick commerce (q-com)
fulfilment and integrated supply chain operations,
making them increasingly integral to India’s logistics
ambitions and long-term economic growth.
According to market reports, several Indian cities
are poised to lead the country’s large-scale industrial
and warehousing expansion over the coming decades.
This growth is expected to be driven by sustained
regulatory support and integrated infrastructure
initiatives such as the National Industrial Corridor
Development Programme (NICDP), which encompasses
industrial corridors, smart cities, multimodal logistics
infrastructure, textile parks, and Green昀椀eld seaports
and airports, as well as transformative national projects
including Bharatmala, Sagarmala, PM Gati Shakti, and
the National Logistics Policy (NLP).
Reports suggest that India currently has about
forty industrial and warehousing market clusters;
however, thirteen out of forty are the ones dominating
the landscape. These thirteen clusters account for 75%
of cumulative demand and new supply since 2021.
The market has 30 crore sq ft of Grade A buildings at
present, which is double the inventory levels seen in
2021. Markets with leasing and fresh supply of over 40
lakh sq ft each since 2021 are considered high activity
clusters. The stock in these hubs stands at 21.47 crore
sq ft as on 昀椀rst quarter of 2026. Delhi NCR, Bengaluru,
and Pune have two such clusters each, and Chennai has
three. Mumbai, Kolkata, Ahmedabad, and Hyderabad
each constitute one cluster.
Demand Concentration and the
Rise of Logistics Clusters
The rise of mega logistics clusters, which initially emerged
as a natural outcome of infrastructure-led development,
is now evolving into a structural shift within the larger
logistics ecosystem itself, and a limited number of
mega logistics clusters are increasingly dominating
both supply and demand across the country. Regions
supported by Dedicated Freight Corridors (DFCs),
industrial corridors, multimodal transport networks,
expressways, ports, and manufacturing ecosystems are
rapidly emerging as preferred warehousing destinations,
gradually pulling demand away from fragmented and
unorganised markets. Industry stakeholders believe
this concentration is being accelerated by a plethora
of factors, including a combination of operational,
infrastructural, and economic factors.
According to Gaurav Agrawal, Director, R Logistics
40
clusters de昀椀ne
India’s industrial and
warehousing market
nationwide
54 | CARGOCONNECT JUNE 2026
