The rise of e-commerce in India is changing the country’s warehouse scene, with Tier II and III towns becoming important hubs, according to a report by international real estate firm JLL.
Beyond urban regions, the research emphasises, the expanding ‘click-and-buy’ trend is driving need for contemporary storage and distribution infrastructure. The report emphasised that in order to improve delivery times and save logistics costs, the corporations also established smaller warehouses in these cities.
Because of their lower population density, these cities also provide access to greater expanses, which makes them perfect for warehouses close to consumption centres, it continued.
The report states that as of 2024, India’s entire warehouse stock had grown to 533.1 million square feet, with growing Tier II-III cities currently accounting for around 100 million square feet, or roughly 18.7 per cent of the total stock. The country’s logistics map underwent a “fundamental change” towards a hub-and-spoke model, as envisaged during the Goods and Service Tax (GST) implementation, according to the research.
The research also stated that the sector is benefiting from improved distribution networks brought about by infrastructure projects like PM Gati Shakti, Bharatmala, Sagarmala, UDAN Scheme, and the construction of goods corridors.
The National Logistics Policy, Make in India, and Digital India initiatives have all promoted favourable industrial environments throughout the nation, the research continued.
The research further stated that the National Logistics Policy, Make in India, and Digital India initiatives have promoted favourable industrial environments throughout the nation.
Companies have been encouraged to establish manufacturing facilities in these cities by the implementation of Production-Linked Incentives (PLI) and Design-Linked Incentives (DLI) schemes, according to the research.
