Fresh investments, supply, and interest are propelling the Indian logistics industry to the next level. India’s Logistics Performance Index ranking has slipped from 35th in the World Bank’s 2016 study. However, the introduction of GST and substantial investments from global players will significantly boost the sector’s growth.
Interestingly, logistics in the Asia Pacific region is performing well. In comparison to other global counterparts according to the 2016 World Bank survey on trade logistics. Singapore, Hong Kong & Japan are top of global league of 160 countries in terms of logistics performance, alongside markets in Europe and the United States.
Based on JLL estimates, the total amount of stock in seven largest logistics markets in the region. Currently totals more than 1.5 billion sqm (gross floor area), double the size of the 795 million sqm. United States and significantly more than the 260 million sqm in Europe. However, it is more appropriate to look at logistics stock at a local level, as regional economies are at vastly different stages of development.
India’s warehousing sector experienced a 20% CAGR from 2014 to 2017, driven by economic revival, e-commerce and third-party logistics growth, and GST implementation. Therefore, existing stock can grow faster until 2022. Investment in infrastructure is also expected to play a significant role, as large planned investments. Such as MMLPs, dedicated freight corridors (DFC), etc. In road, rails, ports and airways across emerging India will bolster trade – and, consequently, warehousing demand.