India’s warehousing industry is expected to witness growth to the tune of 13% to 15% in the medium-term. Increased investing in manufacturing, retail, FMCG and e-commerce sectors are said to be propelling the sector, according to a PTI report.
Growth in overall production and consumption, logistics outsourcing, organised retail and regulatory interventions like the WRDA Act and GST have improved prospects of the organised professional warehousing segment, Care Ratings said in it report.
The government’s thrust to infrastructure projects like dedicated freight corridors has also aided in the segment’s growth and will prove to be an important facilitator for its further growth, the report added. “The domestic warehousing industry grew from ₹ 56,000 crore in 2013 to ₹ 77,000 crore in 2017.” However, the report added, the overall growth potential is limited by challenges like limitations in infrastructure connectivity, need for large capital and issues related to land acquisitions.
News Source – PTI.