Warehousing Industry - Backbone of E-commerce Industry in India

Name - Komal Jain

Topic - Warehousing Industry in India 

Class - SYBCOM - E

Roll Number - 495

Group - 3

It was only a couple of days ago when I bought a detergent powder from Amazon and it got delivered to me within 72 hours. That's when my mother wondered, ‘‘How could Amazon deliver this within 72 hours?” At that very moment, I told her that E-commerce companies like Amazon use warehouses to deliver products on time. 

So, why is the Warehousing Industry in India developing? 

Firstly, with an increase in adoption of online shopping and the rise of E-commerce businesses, the demand for efficient storage and distribution centres has increased. The warehouse industry is growing at a rapid speed. From small godowns to large warehouses and now modern distribution centres, the Indian warehousing landscape has evolved to match International Standards. 

According To Research and Markets as of 2021, the Warehousing Industry in India was valued at Rs 1,206.03 billion. However, by 2027, it's projected to reach a staggering Rs 2,872.10 billion with a Compound Annual Growth Rate (CAGR) of approximately 15.64% during the 2022 to 2027 period.

Secondly, the growth of the manufacturing sector has also played a significant role in the development of the Indian warehousing industry. Since businesses are increasing in India, there is more manufacturing of products happening. This will lead to an increase in demand for warehouses to store the finished goods. 

Thirdly, the government focus on infrastructure development has created a conducive environment for the warehousing industry. Infrastructure such as roads and highways have improved connectivity to and from the warehouses to the final delivery destination. 

Government schemes like the Warehouse Construction Subsidy Scheme also known as the Gramin Bhandaran Yojana, the PM Gati Scheme and the National Logistics Policy (NLP) have accelerated the growth of the warehousing and logistics industry in India.

In India, the cities of Mumbai, Delhi and Bangalore are the warehousing hubs. In Mumbai, Bhiwandi Is the most popular choice for warehouses due to its strategic geographic location and proximity to major industrial hubs.