India’s logistics sector sees a record $1.96 billion investment in 2024, driven by e-commerce and 3PL growth, says the Vestian report.
India’s warehousing and logistics sector attracted $1.96 billion in investments in 2024, marking an impressive 203% year-on-year surge, according to a report by Vestian. The sector accounted for 29% of total real estate investments, fuelled by the rapid growth of quick commerce and e-commerce.
The report highlighted record absorption of 44.9 million sq ft, reflecting a 19% increase from 2023. The second half of 2024 was particularly robust, with 28.3 million sq ft absorbed—a 70% rise compared to the first half—setting a new benchmark.
Mumbai led the absorption race with 18.6 million sq ft, recording 82% year-on-year growth, driven by the Navi Mumbai Airport development and expanding quick commerce services. Pune registered the highest growth at 85%, while Chennai, Hyderabad, and Kolkata collectively accounted for 15% of total absorption, down from 22% in 2023.
The third-party logistics (3PL) sector contributed 33% of total space absorption, while the engineering and manufacturing sector saw its share rise from 18% in 2023 to 24% in 2024. This growth was supported by government initiatives like the Production-Linked Incentive (PLI) scheme and the ‘Make in India’ campaign.
Shrinivas Rao, CEO of Vestian, emphasised that India’s logistics sector is poised for further growth, backed by ongoing government infrastructure projects and strong investor sentiment. The sector’s expansion highlights India’s rising role as a global logistics hub.
Source: IBC Worldnews
