Logistics Infrastructure Growth
India's logistics sector is expanding rapidly, with industrial and warehousing demand across eight major cities reaching nearly 22 million sq ft in the first half of 2026, representing a 12 % year‑on‑year increase, according to Colliers. Third‑party logistics (3PL) companies accounted for 30 % of the leasing activity, and approximately 25 million sq ft of new Grade A warehouse space was completed during the same period.
Hemant Kejriwal, Strategic Infrastructure & Logistics Leader with over 25 years of experience across supply chains, retail, third‑party logistics and international logistics, observes that while e‑commerce and quick‑commerce have evolved swiftly, B2B logistics remains slower to adapt and is often treated merely as an operating expense.
He proposes that the next evolution will focus less on adding fixed warehouses and more on flexible, co‑working‑style warehousing that allows businesses to scale capacity up or down without bearing full fixed costs. Kejriwal also highlights the potential for specialised “category killers” among 3PL operators that develop deep expertise in sectors such as pharmaceuticals, fashion or beverages, rather than competing solely on price.
On the digital front, the government‑run Unified Logistics Interface Platform (ULIP) now integrates 46 systems across 12 central ministries and departments through 142 APIs and more than 2,000 data fields, with over 260 applications already built on the platform. Despite this progress, Kejriwal points out that enterprises still operate fragmented Warehouse Management Systems and Transport Management Systems, limiting data interoperability and curbing the immediate usefulness of artificial intelligence. He notes that AI can improve forecasting, visibility, route planning and decision‑making, but its effectiveness depends on the availability of high‑quality, unified data.
Geopolitical tensions in West Asia have recently driven up freight costs and disrupted shipping routes. In July 2026, India’s merchandise exports hit a record $44.24 billion, even as exporters faced higher freight charges and logistical delays linked to the conflict. Kejriwal sees this as reinforcing the strategic value of Special Economic Zones (SEZs) and Free Trade Warehousing Zones (FTWZs), which offer greater flexibility and remain largely untapped.
A DPIIT‑NCAER assessment places India’s logistics cost at 7.97 % of GDP, a reduction from previously higher estimates. Kejriwal defines a world‑class supply chain as one where inventory is accurate, safe and visible in real time; goods can be moved predictably; and the governing rules are clear. He concludes that while physical and digital logistics rails are being built, the competitive advantage now lies inside enterprises, in how they design, connect and utilise their supply chains.
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