FICCI-GT Report on Evolving landscape of warehousing and logistics in India: A road to becoming third-largest economy by 2027
India’s warehousing and logistics sector is undergoing a transformative shift, emerging as a critical enabler of economic growth and competitiveness. As the country advances towards becoming the world’s third-largest economy, the sector is evolving from a fragmented, cost-driven function into an integrated, technology-led ecosystem. Policy reforms such as PM Gati Shakti, the National Logistics Policy, and infrastructure status to logistics have provided strong momentum by improving multimodal connectivity, reducing logistics costs, and enhancing ease of doing business.
The rapid expansion of e-commerce, manufacturing, agri-logistics, and organized retail has significantly increased demand for modern warehousing, cold chain infrastructure, and value-added services. Technology adoption—including automation, digital platforms, data analytics, and warehouse management systems—is improving efficiency, visibility, and reliability across supply chains. Sustainability is also gaining prominence, with a growing focus on green warehousing, energy-efficient designs, and optimized transportation networks.
Despite notable progress, challenges remain in land availability, skill development, standardization, and last-mile connectivity. Addressing these gaps through public-private collaboration, investment in skill ecosystems, and continued regulatory support is essential. A future-ready logistics and warehousing sector will not only strengthen India’s domestic supply chains but also enhance its role as a global manufacturing and distribution hub, driving inclusive and resilient economic growth.
Key Takeaways
- India’s logistics industry is projected to reach USD 380 billion by 2025, growing at 10–12% annually
- Warehousing is expanding rapidly, expected to reach USD 35 billion by 2027 at a CAGR of 15.64%
- Cold chain infrastructure is critical for agriculture and pharmaceuticals, supported by schemes like PMKSY and ICCVAI
- Containerisation is rising due to global trade growth, Sagarmala programme, and demand from e-commerce and manufacturing
- Government initiatives such as GST, National Logistics Policy, and National Warehouse Policy are driving integration and efficiency
- PM GatiShakti and 35 planned Multi-Modal Logistics Parks aim to reduce logistics costs to global benchmarks of 8–9% of GDP
- Technology adoption including IoT, robotics, AI, WMS, and TMS is transforming warehousing and logistics operations
- Tier 2 and 3 cities are witnessing strong warehousing demand, driven by 3PL and e-commerce players
- Green logistics interventions such as energy-efficient facilities, sustainable packaging, and renewable energy are gaining traction
- Skill development initiatives are vital, with over 20 million people employed in logistics and growing demand for trained manpower
- Private sector participation and investments are crucial for scaling infrastructure and adopting advanced technologies
- The report positions logistics as strategic economic infrastructure, essential for India’s competitiveness and growth toward becoming the third-largest economy by 2027