Ratings agency ICRA said that increasing formalization of the sector, preference for Grade A warehousing facilities and implementation of the Goods and Services Tax have accelerated the growth of industrial and warehouse logistics parks (IWLP).
The overall supply witnessed a CAGR of 17% during 2016-2021 to 258 mlnsqft with increase in Grade A supply mix from 30% in 2016 to 45% in 2021.
Amid the pandemic-induced disruptions, the industrial and warehouse logistics park segment saw a healthy traction in demand from service sectors such as e-commerce and third-party logistics (3PL).
Industrial and warehouse logistics park supply estimated at 330 million square feet (mnsqft) by 2023 with Grade A accounting for 48%; occupancies to remain healthy in the range of 85-90% supported by robust demand from e-commerce and 3PL.
The sector attracted investment of around Rs. 26,500 crore between FY2017 and FY2022 from various global logistics operators and foreign investors, such as CPPIB, GLP, Blackstone, ESR, Allianz, GIC, and CDC Group.
