In the first quarter of 2023, India's industrial and warehousing sector demonstrated remarkable resilience, achieving a 15% year-on-year increase in leasing activity despite global supply chain challenges. The sector recorded 19.3 million sq ft of transactions across the top eight markets, marking the second-highest quarterly absorption since 2023. Manufacturing and third-party logistics (3PL) companies were key drivers of this demand, with manufacturing accounting for 48% of total leasing and 3PL contributing 33%. Mumbai emerged as the leading market, witnessing a 66% rise in transactions to 7.4 million sq ft. Other cities like Ahmedabad and Kolkata also showed significant growth, while Pune and Chennai faced declines due to supply constraints. Overall, the sector's performance reflects a structural resilience and the ongoing diversification of global supply chains. Rental values increased across all markets, with Chennai experiencing the highest growth at 7% year-on-year. Vacancy levels remained stable at 11.1%, supported by steady leasing activity and measured supply additions.