
Warehousing & Logistics
India is rapidly transforming its warehousing and logistics sector, establishing itself as a vital link in global supply chains. With a market size of USD 250 billion in 2024, the sector is projected to grow to USD 380 billion by 2025, driven by substantial investments in modern warehousing, multimodal transport systems, and automation technologies. Government initiatives such as Gati Shakti, the Production-Linked Incentive (PLI) Schemes, and enhanced bilateral agreements are playing a pivotal role in modernizing logistics infrastructure and fostering international trade.
Infrastructure advancements, including dedicated freight corridors, logistics parks, and port connectivity, are boosting efficiency, while sustainability initiatives like green warehouses and electrified transport fleets are gaining traction. These developments position India as a global hub for cost-effective, resilient supply chain solutions, strengthening its appeal to international investors and trade partners.
India and Gulf
India's warehousing and logistics network with the Gulf region is integral to supporting the trade of oil, gas, gold, and food products. Key hubs such as Jebel Ali Free Zone (UAE) and Kandla Port (India) handle significant cargo volumes, with temperature-controlled warehouses playing a critical role in food and perishable goods exports. Trade between the two regions stood at USD 180 billion in 2024 and is forecasted to grow to USD 210 billion in 2025.
Bilateral deals, including the India-UAE CEPA, have enabled streamlined customs processes and increased the demand for automated warehousing. Future efforts will focus on developing green trade corridors to minimize carbon footprints, along with the integration of smart warehousing solutions in collaboration with Gulf Cooperation Council (GCC) nations.
India-CIS
The warehousing and logistics sector has been pivotal in expanding trade between India and the CIS region, which grew to USD 15 billion in 2024 and is expected to reach USD 20 billion in 2025. The International North-South Transport Corridor (INSTC) has significantly reduced transit times, making multimodal logistics (rail, road, and sea) a game-changer.
Warehousing hubs in Kazakhstan and Armenia are being developed as part of bilateral efforts to enhance storage capacity and supply chain efficiency. Cold storage facilities for pharmaceuticals and perishable goods are a primary focus. Future plans include advanced rail freight systems and the establishment of bonded warehouses to facilitate smoother trade flows.
India-Africa
India’s trade with Africa, valued at USD 98 billion in 2024, is projected to grow to USD 120 billion in 2025, with warehousing playing a critical role in agricultural exports and technology collaboration. Initiatives like the Asia-Africa Growth Corridor (AAGC) have emphasized the establishment of bonded warehouses and dry ports in countries like Kenya and South Africa.
These warehouses focus on storing processed foods, machinery, and pharmaceuticals while reducing transit times. Collaborative efforts are underway to implement solar-powered warehouses to support Africa’s energy goals. Future visions include increased use of automated systems and digital platforms for inventory management, enhancing the efficiency of India-Africa trade corridors.
India-America
The India-America trade partnership, valued at USD 125 billion in 2024, is set to rise to USD 150 billion in 2025, supported by robust warehousing and logistics networks. Warehousing facilities in California, Texas, and New Jersey serve as key nodes for Indian exporters of pharmaceuticals, textiles, and IT hardware.
The Indo-US Strategic Trade Dialogue has encouraged investments in smart warehouses, featuring IoT-enabled tracking and real-time inventory management. Future plans include the development of regional distribution centers in the U.S. to streamline supply chains for Indian exporters and greater integration of AI-driven logistics for just-in-time delivery systems.
India-Asia Pacific
India’s trade with the Asia-Pacific region, valued at USD 200 billion in 2024, is projected to grow to USD 250 billion in 2025, with warehousing acting as a vital enabler. Indo-Japan collaborations have led to the establishment of specialized warehouses for electronics and automotive components.
The region is also seeing significant investment in green logistics solutions, particularly in ASEAN countries. Warehousing hubs in Singapore and Malaysia now cater to Indian exporters, offering advanced inventory tracking systems and cold chain solutions. The future vision includes the creation of mega trade hubs and expanding multimodal logistics routes to improve connectivity and efficiency.
India-Europe
India-Europe trade, valued at USD 120 billion in 2024, is forecasted to grow to USD 145 billion in 2025, with warehousing and logistics infrastructure playing a critical role. Joint efforts are underway to develop innovation hubs that focus on supply chain optimization and green warehousing practices.
Logistics parks in Germany, the Netherlands, and France cater to Indian exports of pharmaceuticals, technology, and engineering goods. Warehousing automation, driven by robotics and AI, has gained traction in these hubs. Future initiatives include the integration of block chain-based tracking systems to improve transparency and efficiency in supply chains and reduce logistical bottlenecks.
India's warehousing and logistics sector is a key driver of its international trade partnerships, with a focus on automation, sustainability, and digital transformation. By 2025, trade across key regions is expected to surpass USD 1 trillion, supported by state-of-the-art warehousing hubs and multimodal logistics corridors. With continued investments and bilateral collaborations, India is set to solidify its position as a global logistics leader.