India’s warehousing and logistics sector is experiencing a remarkable surge in growth, fueled by a 203% increase in investments in 2024, which amounted to $1.96 billion. This substantial investment, which accounted for a significant portion of total institutional investments in the real estate sector, challenges previous, less reliable estimates that pegged India’s logistics costs much higher. The growth is largely attributed to the rapid expansion of quick commerce and the development of major infrastructure projects, which have collectively led to a record absorption of warehousing space.
The rapid evolution of the intralogistics sector is also being driven by technological advancements. The industry is moving away from a largely unorganized, manual system to a more efficient and technologically integrated model. This transformation is powered by the adoption of cutting-edge solutions like robotics, AI, IoT sensors, and automated storage and retrieval systems (ASRS). These technologies are helping businesses optimize their operations, enhance order accuracy, and reduce costs.
This growth is not just confined to major metropolitan areas; it is also spreading to emerging Tier 2 and Tier 3 cities. This shift is creating a decentralized “hub-and-spoke” model, which improves last-mile delivery and reduces overall logistics costs by bringing supply chains closer to the end consumer. With continued government support through initiatives like the PM Gati Shakti National Master Plan and the National Logistics Policy, India’s intralogistics sector is poised for sustained growth, attracting further investment and solidifying the country’s position as a key global logistics hub.