Plug-and-Play Industrial Parks: Government infrastructure initiatives boost optimism in India's warehousing sector, ET Infra

Time of India

a day ago

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ET Bureau
Slow pace of land aggregation, delayed government approvals, patchy utilities, and poor connectivity to highways and railheads are key factors impeding further expansion of India's warehousing sector, according to a report. The country currently offers just 0.2 sq ft of quality warehousing per urban resident, far behind China's 8.6 and the US's 47.3. This is despite 97 per cent of manufacturing companies surveyed in India by property consultancy Cushman & Wakefield acknowledging improved access to Grade-A warehousing Plug-and-play (P&P) infrastructure has emerged as a key solution. "According to our survey, 88 per cent of manufacturers are scaling up due to infrastructure-led confidence, and over 95 per cent report improved logistics access through government-backed programmes," said Gautam Saraf, executive managing director, Mumbai and new business at Cushman & Wakefield. "To sustain this momentum, India must address deep-rooted cost and capacity gaps, especially in logistics, integrated facilities, and MSME productivity ." Plug-and-play industrial parks , multimodal logistics networks, and improved land aggregation frameworks are not just enablers-they are essential levers for converting policy momentum into production-ready outcomes," Saraf added. The survey was conducted with 94 senior decision-makers across India's manufacturing and logistics sectors, including chief executives, plant heads, and supply chain leaders, capturing a mix of perspectives from large enterprises and MSMEs. These respondents represent a diverse group, with 56 per cent of companies surveyed employing over 500 people.The study revealed high optimism regarding the impact of government-led infrastructure initiatives such as Bharatmala, Sagarmala, dedicated freight corridors, and the National Industrial Corridor Development. As many as 86 per cent of respondents said these initiatives have positively influenced their business operations, while 95 per cent reported improved access to logistics and transport infrastructure "A significant takeaway from our research is the rising importance of plug-and-play industrial parks. These pre-approved, infrastructure-ready zones are helping reduce time-to-market, lower upfront capital expenditure, and mitigate operational risks, especially for MSMEs looking to scale," said Abhishek Bhutani, managing director, logistics & industrial, Cushman & Wakefield.For 88 per cent of respondents, the government's infra push has directly influenced capital investment decisions, signalling increased confidence to scale operations. For large enterprises, impact is even sharper-94 per cent say these upgrades have been pivotal in shaping their expansion plans.Report points to rising momentum in sectors such as automotive, engineering goods, electronics, and chemicals. Simultaneously, third-party logistics and FMCG operators are driving demand for Grade-A warehousing, buoyed by consumption growth and scaling of distribution networks.