India’s warehousing sector is expected to expand beyond the country’s major Grade A cities as changing consumption patterns, infrastructure development and the growth of organised supply chains create demand in emerging markets, according to Pankaj Bhardwaj of Adani Ports and Special Economic Zone (APSEZ).Key HighlightsIndia’s warehousing growth is expected to move beyond major Grade A cities.Emerging consumption centres are creating new demand for logistics infrastructure.E-commerce, organised retail and manufacturing are supporting warehousing demand.Adani Ports has been expanding its logistics and warehousing footprint across India.The shift could increase opportunities in tier-2 and other emerging locations.Warehousing Growth Moves Beyond Major CitiesIndia’s warehousing market has traditionally been concentrated around major consumption and industrial centres. However, the next phase of growth is expected to reach a wider set of locations as businesses look for warehouses closer to emerging markets and production hubs.Pankaj Bhardwaj of Adani Ports highlighted the changing geography of warehousing demand, pointing to the potential for growth beyond the established Grade A cities.The expansion is being supported by improvements in road connectivity, logistics infrastructure and the increasing formalisation of supply chains.E-Commerce and Manufacturing Drive DemandThe growth of e-commerce has changed the way companies plan their distribution networks. Faster delivery expectations require inventory and fulfilment facilities to be positioned closer to consumers.Manufacturing growth is also creating demand for warehouses near industrial clusters. As companies expand their supply chains, logistics facilities are increasingly being developed around production centres as well as consumption markets.Colliers reported that industrial and warehousing leasing across India’s top eight cities reached 11 million square feet in the first quarter of 2026, up 22 per cent year-on-year. Third-party logistics companies accounted for about one-third of the quarterly demand, while e-commerce and automobile companies also remained significant sources of demand.Grade A Warehousing Continues to ExpandWhile demand is spreading geographically, Grade A warehousing remains an important part of India's logistics expansion.Adani Logistics has previously outlined plans to build warehousing across multiple Indian cities, combining standalone facilities with larger multimodal logistics parks. The company has also highlighted the growing requirement for fulfilment centres, sorting centres and distribution centres as supply chains become more integrated.Adani Ports has also expanded its operational warehousing capacity over the years through new projects and strategic acquisitions. In an earlier investor update, the company said it was developing facilities across locations including Mundra, Nagpur, Ahmedabad, Baroda, Mumbai and the National Capital Region.Emerging Locations Could Become New Warehousing HubsThe expansion beyond Grade A cities could create new logistics hubs in locations that benefit from industrial activity, better connectivity and growing consumer demand.For businesses, locating warehouses closer to regional markets can help reduce transportation distances and improve delivery efficiency. It can also support the development of integrated logistics networks connecting ports, manufacturing clusters and consumption centres.The trend is particularly relevant as India continues to strengthen its domestic supply chains and position itself as a manufacturing and logistics hub.Outlook for India’s Warehousing SectorIndia’s warehousing growth is increasingly being shaped by more than just demand in large metropolitan markets. The combination of e-commerce, manufacturing, organised retail and third-party logistics is creating demand across a broader network of locations.As infrastructure improves and companies seek more efficient supply chains, emerging cities and industrial corridors could play a larger role in the country’s next phase of warehousing development.
