India’s logistics investment surges 203% in 2024

New Delhi

India’s warehousing and logistics sector attracted $1.96 billion in investments in 2024, marking a 203% year-on-year surge, according to a report by Vestian. The sector accounted for 29% of total real estate investments, driven by the rapid expansion of quick commerce and e-commerce.

The report highlighted a record absorption of 44.9 million sq ft, a 19% increase from 2023. The second half of 2024 alone saw 28.3 million sq ft absorbed, a 70% jump over the first half, setting a new record.

Mumbai led with 18.6 million sq ft absorbed, growing 82% year-on-year, fueled by Navi Mumbai Airport’s development and expanding quick commerce services. Pune recorded the highest growth at 85%, while Chennai, Hyderabad, and Kolkata collectively accounted for 15% of total absorption, a decline from 22% in 2023.

The third-party logistics (3PL) sector accounted for 33% of total space absorption, while the engineering and manufacturing sector saw its share rise from 18% in 2023 to 24% in 2024, benefiting from government initiatives like the PLI scheme and ‘Make in India’.

Vestian CEO Shrinivas Rao stated that India’s logistics sector is set for further growth, supported by government infrastructure projects and positive investor sentiment. The sector’s expansion underscores India’s emerging role as a key global logistics hub.