Colliers identifies 30 high-potential industrial & warehousing hotspots across India, driven by infrastructure expansion, manufacturing growth and policy push
New Delhi, Feb 26: India’s industrial and warehousing market is entering a phase of accelerated transformation, driven by strong policy support, infrastructure augmentation, evolving consumer behavior, supply-chain recalibration, and rapid technology adoption. With India’s manufacturing sector currently contributing around 17% to GDP and projected to reach approximately 25% by 2035, the industrial and warehousing sector is emerging as a high-growth frontier supported by rising demand for modern Grade A facilities and growing institutional investments.According to Colliers’ latest report, India’s Emerging Industrial & Warehousing Corridors: Mapping the Next Growth Frontier, multiple cities are poised to lead the next wave of industrial and logistics growth. This momentum is backed by corridor development programmes, the PM Gati Shakti initiative, the National Logistics Policy, and infrastructure investments spanning industrial corridors, smart cities, multimodal logistics parks (MMLPs), textile parks, and greenfield ports and airports. Sector-focused interventions such as the BioPharma SHAKTI Scheme and Semiconductor Mission 2.0 are further expected to catalyze growth in smaller industrial hubs.30 Cities Identified as Future Industrial & Warehousing HotspotsColliers assessed over 100 cities using a proprietary analytical framework based on five key parameters:
- Enhanced connectivity along strategic industrial and freight corridors
- Upcoming industrial smart cities
- Proposed Multi-Modal Logistics Parks (MMLPs)
- Expansion of sea and airport linkages
- Development of large integrated textile hubs
Additional factors such as maturity of industrial ecosystems, manufacturing cluster presence, infrastructure completion stages, multimodal connectivity, availability of Grade A stock, MSME activity, and e-commerce penetration were also considered. The final shortlist includes 30 high-potential cities categorized into Prime, Emerging, and Nascent hubs.Cluster-Wise ClassificationPrime Hubs (8):
Ahmedabad, Bengaluru, Chennai, Delhi NCR, Hyderabad, Kolkata, Mumbai, PuneEmerging Hubs (12):
Bhopal, Bhubaneswar, Coimbatore, Indore, Jaipur, Kochi, Lucknow, Nashik, Patna, Rajpura, Surat, VisakhapatnamNascent Hubs (10):
Amravati, Guwahati, Hosur, Jammu, Jamshedpur, Kanpur, Nagpur, Prayagraj, Raipur, VijayawadaThe geographical distribution reflects balanced growth across Northern, Southern, Western, Eastern, and Central India. Prime hubs are established demand centers expected to absorb new supply rapidly. Emerging hubs are likely to gain momentum as key infrastructure projects near completion, while nascent hubs are anticipated to scale gradually with continued policy and infrastructure support.Infrastructure to Drive Grade A Warehousing UptakeIndia’s industrial and warehousing transformation is anchored in cohesive national programmes such as the National Industrial Corridor Development Programme (NICDP) and the PM GatiShakti National Master Plan.Infrastructure Development Snapshot:
- 11 Industrial Corridors under development
- 5 Dedicated Freight Corridors
- 20 Industrial Smart Cities
- 35 sanctioned Multi-Modal Logistics Parks (5 approved)
- 7 PM MITRA textile parks
- 800+ projects under the Sagarmala Programme (200 completed)
- 8 international airports under construction
This infrastructure push is expected to significantly boost Grade A warehousing demand.Demand Outlook: 50+ Million Sq. Ft. Annual Uptake by 2030Driven by strong demand from 3PL players and sectors such as automobiles, engineering, FMCG, and e-commerce, annual Grade A space uptake across the top 8 cities is projected to exceed 50 million sq. ft. by 2030.Market Trends & Long-Term Outlook:
- Demand expected to grow from ~37 million sq. ft. in 2025 to 50+ million sq. ft. by 2030
- Total stock projected to increase from ~300 million sq. ft. in 2025 to ~500 million sq. ft. by 2030
- Long-term potential to reach over 2 billion sq. ft. by 2047
Vijay Ganesh, Managing Director, Industrial & Logistics Services, Colliers India, said:
“The next wave of industrial and warehousing growth will be strengthened by expanding industrial and freight corridors, multimodal logistics parks, smart industrial cities, and major sea–airport expansion projects. Budgetary allocations and sector-focused interventions will not only boost established markets but also unlock investments across emerging and nascent hubs.”
Vimal Nadar, National Director & Head, Research, Colliers India, added:
“Policy-driven domestic manufacturing growth and infrastructure expansion will remain pivotal to the sector’s transformation. Grade A warehousing stock across the top 8 cities is projected to cross 500 million sq. ft. by 2030 and could potentially scale to 2 billion sq. ft. by 2047, fostering balanced regional growth and positioning smaller cities as new growth frontiers.”
With sustained infrastructure development, demographic shifts, and strengthening consumption patterns, India’s industrial and warehousing sector is poised for exponential expansion over the coming decades. The evolution of the sector will be marked by increased efficiency, automation, supply chain integration, sustainability, and advanced technology adoption, reinforcing its role as a cornerstone of India’s long-term economic growth trajectory.