2024’s Mega Infrastructure Projects: Driving Change in India’s 3rd-Party Logistics & Warehousing Industry

India’s warehousing sector is currently experiencing a significant transformation, driven by the simultaneous growth of the industry and infrastructure. Moreover, with the upcoming 2024 elections, the country is witnessing a surge in infrastructure projects that aim to revolutionize connectivity and enhance economic growth. This, in turn, is expected to greatly boost the growth of the 3PL and warehousing sectors.

A recent report has highlighted the remarkable growth of the Indian warehousing market in the first half of 2023. The total space take-up has increased by 35% year-on-year, reaching an impressive 19.1 million square feet. Third-party logistics (3PL) players have played a significant role in this growth, accounting for approximately 43% of leasing activity compared to the previous year. The Indian government’s focus on positioning the country as a global manufacturing and logistics hub has led to the implementation of various policies, attracting an estimated USD 10 billion in investments for the warehousing and logistics sector. These developments, combined with India’s ambitious infrastructure agenda for 2024, are expected to propel the country towards becoming a prominent global logistics hub.

The inauguration of significant infrastructure projects ahead of India’s 2024 elections signals a turning point in the nation’s development. Projects like the Mumbai Trans Harbour Link, Navi Mumbai International Airport, Noida International Airport, Western Dedicated Freight Corridor, and Bengaluru-Chennai Expressway are gaining traction, unlocking new economic growth opportunities. Alongside positive policy support, completing these infrastructure projects will revolutionize India’s industrial landscape, enhancing manufacturing, attracting international businesses, and boosting the warehousing and logistics sector.

Mumbai Trans Harbour Link (MTHL):

The Mumbai Trans Harbour Link (MTHL), which was recently inaugurated, is India’s longest sea bridge, stretching over a distance of 22 kilometers. Its primary purpose is to improve the flow of traffic, boost economic growth in Navi Mumbai, and establish a solid foundation for more efficient logistics operations in the area.

Navi Mumbai International Airport:

The recently inaugurated Mumbai Trans Harbour Link (MTHL) stands as India’s lengthiest sea bridge, spanning a remarkable 22 kilometers. Its principal objective is to enhance traffic movement, stimulate economic growth in Navi Mumbai, and lay a strong groundwork for enhanced logistics operations in the region.

Noida International Airport:

Situated in the National Capital Region (NCR), the Noida International Airport is expected to commence operations by 2024. It will play a crucial role as a central point for trade and commerce, enhancing the seamless transportation of goods and passengers. Moreover, it will contribute to the growth of the region by promoting regional development and expanding the existing infrastructure.

Western Dedicated Freight Corridor:

The Western Dedicated Freight Corridor (WDFC) aims to improve the efficiency of freight transportation between Delhi and Mumbai. With a target completion date set before the 2024 elections, this dedicated corridor provides modern infrastructure and advanced signaling systems. These enhancements will not only promote economic growth along the route but also enable smooth transportation of goods, resulting in reduced transit times and costs for businesses.

Impact on Business and Trade

India’s emphasis on infrastructure development attracts international businesses seeking investment opportunities. World-class transportation hubs improve India’s connectivity with global markets, making it appealing for multinational corporations. Combined with modernized infrastructure, supportive government policies, access to a vast consumer market, a skilled workforce, and a conducive environment for foreign direct investment, India becomes an ideal base for international businesses to explore opportunities in manufacturing, research and development, and service-oriented industries.

Stimulating Growth of 3PL and Warehousing Sector:

The growing infrastructure landscape in India is set to boost the growth of the third-party logistics (3PL) and warehousing sector. As industries expand and supply chains become more intricate, there is an increasing need for specialized logistics services and modern warehousing facilities.

The development of dedicated freight corridors and expressways will enhance the movement of goods, allowing 3PL providers to offer more efficient and cost-effective logistics solutions to their clients. Moreover, the proximity to major transportation hubs like airports and seaports will enable quicker distribution of goods, reducing lead times and improving customer satisfaction. Additionally, the influx of international businesses and the expansion of domestic industries will generate demand for advanced warehousing infrastructure.

Way forward

India’s infrastructure transformation journey is set to have a significant impact on industry growth, attracting international businesses, and boosting the 3PL and warehousing sector. Through improved connectivity, streamlined logistics, and a favorable business environment, these infrastructure projects are paving the way for sustainable economic development, positioning India as a top choice for investment and expansion in the global market.