Mumbai: The recent data indicating India’s warehousing growth 16% in July–September highlights the strong momentum of the country’s logistics and manufacturing ecosystem. The latest report by Knight Frank India shows that total absorption jumped to 17.1 million square feet. This marks a 16 per cent year-on-year rise in Q3 2025.
Strong demand pushed year-to-date leasing activity to 49.2 million square feet, up 32 per cent from last year. The surge signals another record-breaking year for the sector.
Manufacturing occupiers, excluding FMCG and FMCD, dominated leasing with 44 per cent of total transactions in Q3 and 45 per cent YTD. Their space consumption grew 56 per cent year-on-year during the first nine months of 2025. This growth shows how industries continue to expand their base across India.
The report adds that India’s warehousing growth 16% in July–September comes from a mix of manufacturing, third-party logistics (3PL), and e-commerce players. These sectors thrive on strong domestic demand, diversified supply chains, and proactive government policies. These policies support industrial expansion.
Occupiers increasingly prefer Grade A facilities, which now account for 61 per cent of total leased space in 2025. This is compared to 58 per cent a year ago. This change is a sign of India’s shift toward world-class warehousing infrastructure.
“India’s warehousing and industrial sector is transforming fast,” said Shishir Baijal, Chairman and Managing Director of Knight Frank India. “Manufacturing growth, efficient logistics, and policy stability are driving high-quality, long-term expansion.”
E-commerce also bounced back sharply, leasing 2.5 million square feet in Q3 2025. This represents a 137 per cent jump from last year, which is its highest quarterly volume since early 2023.
Rents continued to climb across major cities due to active leasing by manufacturers and logistics companies.
As global supply chains diversify, more firms are setting up production in India. These developments are backed by government incentives and infrastructure upgrades. The manufacturing outlook remains upbeat, and India’s warehousing sector looks ready for sustained growth.
–IANS
