India’s logistics sector hits record 76.5m sq. ft. absorption in 2025, driven by a 29% surge in manufacturing demand.
India’s industrial and logistics sector maintained a powerful growth trajectory throughout 2025, reaching a historic annual absorption peak of 76.5 million square feet. This milestone represents an 18.6 percent year-on-year increase, according to a report released on 24 December 2025.
The surge is largely attributed to proactive government policies, with the manufacturing segment emerging as the primary catalyst for growth.
- Manufacturing surge: This sector accounted for 22 million square feet, representing 29 percent of total absorption in 2025, a significant rise from 22 percent in the previous year.
- Sector breakdown: Third-party logistics (3PL) contributed 28 percent of the demand, followed by FMCG and FMCD at 11 percent, and retail at 6 percent.
- E-commerce rebound: Following a period of subdued activity, the e-commerce sector recovered strongly, with its market contribution climbing to 12 percent in 2025.
Tier 1 cities remain the dominant hubs, representing 78 percent of total absorption and 82 percent of the new supply.
- Regional leaders: Delhi-NCR led the market with a 17 percent share of total absorption, followed closely by Pune at 15 percent and Mumbai at 14 percent.
- Emerging hubs: Tier 2 and Tier 3 cities accounted for the remaining 22 percent of absorption and 18 percent of the total supply.
The sector is anticipated to experience a breakout year in 2026, with both supply and absorption expected to exceed 80 million square feet. Srinivas N, Managing Director of Industrial and Logistics at Savills India, noted that the ‘Make in India’ initiative has transitioned into a globally integrated platform, strengthening domestic production and India’s role in global supply chains.
SOURCE – ZEE NEWS
