Overview

India’s logistics infrastructure is expanding rapidly, with industrial and warehousing demand across the eight major cities reaching almost 22 million sq ft in the first half of 2026, representing a 12% year‑on‑year increase according to Colliers. Third‑party logistics (3PL) providers captured 30% of the total leasing activity, and approximately 25 million sq ft of new Grade A warehousing space was completed during the same period.

Shifting Focus from Capacity to Flexibility

Hemant Kejriwal, Strategic Infrastructure & Logistics Leader, argues that the next growth phase will centre on making supply chains more connected and flexible rather than merely adding more warehouses. He likens the potential evolution to the co‑working office model, suggesting that real‑estate players could add operational layers to offer flexible warehousing that allows businesses to scale capacity up or down without bearing the full fixed cost of a dedicated facility. Kejriwal also sees an opportunity for 3PL operators to become “category killers” by developing deep expertise in specific sectors such as pharmaceuticals, fashion, or beverages, moving beyond price‑based competition.

Digital Integration and Data Challenges

At the governmental level, the Unified Logistics Interface Platform (ULIP) now integrates 46 systems across 12 central ministries and departments, exposing 142 APIs and more than 2,000 data fields. Over 260 applications have already been built on the platform, signalling a move toward a more connected logistics architecture. However, Kejriwal notes that within enterprises, fragmentation persists as warehouses, transporters, manufacturers and distributors operate on disparate Warehouse Management Systems and Transport Management Systems, limiting data interoperability. He cautions that artificial intelligence cannot deliver value until high‑quality, interoperable data is available, even though AI could improve forecasting, visibility, route planning and decision‑making.

Geopolitical Pressures and Strategic Infrastructure

Recent tensions in West Asia have pushed up freight costs and complicated shipping routes for Indian exporters. In July 2026, India’s merchandise exports reached a record $44.24 billion, despite higher freight charges and logistical delays linked to the conflict. Kejriwal highlights that such disruptions make inventory placement, rerouting speed, and alternative trade corridors strategic considerations. He points to Special Economic Zones (SEZs) and Free Trade Warehousing Zones (FTWZs) as largely untapped assets that can provide the required flexibility and optionality.

Cost Efficiency Gains

A DPIIT‑NCAER assessment places India’s logistics cost at 7.97% of GDP, a notable reduction from earlier, higher estimates. Kejriwal defines a world‑class supply chain as one where inventory is accurate, safe and visible in real time; movement is predictable; and the governing rules are clear.

Conclusion

The physical and digital logistics rails are being built, but the competitive advantage now hinges on how Indian businesses design, connect and utilise their supply chains internally.

Disclaimer: This press release is provided under an arrangement with PNN. PTI takes no editorial responsibility for the content.