India's Industrial Clusters to Drive Warehousing Growth
High-activity industrial clusters to dominate India warehousing growth
The Economic TimesImage: The Economic Times
India's industrial and warehousing sector is projected to see demand concentrated in 13 high-activity clusters, which are expected to account for 70-80% of Grade A industrial activity. With a current stock of 299.2 million sq ft, these clusters are central to the sector's growth due to infrastructure improvements and rising investments.
- 0113 high-activity clusters will dominate India's warehousing sector, accounting for 70-80% of Grade A activity.
- 02These clusters have contributed to 75% of industrial and warehousing demand and supply since 2021.
- 03Bhiwandi near Mumbai is the largest cluster with 42.1 million sq ft of Grade A stock.
- 04Rentals in high-activity clusters have increased by 15-35% over the last five years.
- 05Continued infrastructure development is expected to further boost demand in these regions.
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India's industrial and warehousing sector is poised for significant growth, with 13 high-activity clusters projected to account for 70-80% of the country's Grade A industrial and warehousing activity in the coming years. According to a report by Colliers India, these clusters have already represented approximately 75% of the cumulative demand and new supply since 2021. As of the first quarter of 2026, India's Grade A industrial and warehousing stock reached 299.2 million sq ft, nearly double the levels seen in 2021, with high-activity clusters comprising 72% of this total. Bhiwandi, located near Mumbai, stands out as the largest cluster, boasting 42.1 million sq ft of Grade A stock, benefitting from its proximity to major transport routes. The report highlights that rentals in these clusters have surged by 15-35% over the past five years, with expectations for continued annual increases of 5-10%. This growth is supported by ongoing infrastructure enhancements and a rising preference for institutional-grade assets.
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The concentrated growth in these high-activity clusters is expected to enhance job opportunities and improve logistics efficiency, benefiting local economies.
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