The logistics sector in India has gone through a paradigm shift over the past decade. From an increasing number of policy incentives to tech-enhanced warehouses, the sector is now seeing a change in every aspect of its operation.
The continued growth of the e-commerce sector is a direct fallout of the growth in internet penetration, smartphone penetration, Digital India initiative and the rise of the millennial population gaining access to the internet.
E-commerce accounted for almost 23% of the overall warehousing leasing in 2018, with the
average size of an e-commerce transacting hovering around 170,000 sq. ft.
The strong growth of e-commerce will ensure that quality warehosuing supply continues to come on stream. The overall supply for warehousing is expected to be around 60 million sq. ft. till 2020, at least 22 million sq. ft. of this supply is estimated to be in the grade A category.
The growth of both sectors will open up opportunities for developers and occupiers alike. Trends such as evolution of the traditional supply chain, increased use of tech in both sectors, greater cooperation between ecommerce players, optimised delivery networks and asset redevelopment opportunities will be some trends that will become more pronounced in the future.