After COVID-19, the Indian Warehousing Industry is Resiliently Bouncing Back.

Institutional investors on both the domestic and international levels have become interested in the Indian warehousing industry over the years. It has recently been seeing remarkable expansion. Since the COVID-19 outbreak, e-commerce platforms have used warehouse facilities more frequently as consumer demand has reached an all-time high, boosting both the e-commerce industry and warehousing capacity needs. The epidemic has caused the organised food delivery sector to grow, which has increased the demand for cold chain warehousing space. As a result, the warehousing industry has become a tough asset class, and the real estate market is still showing signs of growth. The technology backbone of the warehouse receives significant financial investment to ensure automation and effective operations.

The cost of building a warehouse has greatly decreased from earlier. The asset is therefore a more affordable choice on the commercial real estate market. The low cost of warehouses contributes to their high occupancy rates. Warehouse tenants typically sign leases for nine to fifteen years, whereas commercial office leases typically have a lock-in period of three to five years. A warehouse investment is therefore more reliable and stable.

The second-biggest factor boosting the need for warehouse space is the growth of third-party logistics. The industry that acquired the most warehouse space in 2021 was 3PL (third-party logistics), followed by e-commerce. Due to increased FDI and laxer policy reforms, the demand for 3PL warehousing would continue to rise in the manufacturing and agricultural sectors. Emerging industries like e-commerce with last-mile deliveries of 30 and 10 minutes, telecommunications, healthcare, and IT will also be major driving factors for 3PL warehousing.

Many industries, including food processing, mobile devices, pharmaceuticals, and automobile components, invested extensively in expanding their manufacturing operations in India when the government introduced the Production Linked Incentive (PLI) scheme. As a result of the nation's "Make in India," "Atmanirbhar Bharat," and "Vocal for Local" campaigns, demand has grown and the response has been positive. In addition, the Bharatmala Project of the government plans to construct 35 multimodal logistics parks around the nation, four of which are being proposed in Maharashtra through a Public-Private Partnership. The country's storage and logistics operations should be strengthened by this combination of operations.

The India Forklift Market is booming as a result of the market's rapid expansion, which is mostly due to an increase in demand for forklifts that can resist adverse weather conditions. Additionally, the industry is expanding due to the expanding infrastructure sector. A large number of governmental organizations are trying to upgrade the current infrastructure in order to support general economic growth. The expansion may be attributed to both the expanding e-commerce industry and recent modifications in warehouse operations. The need for forklifts that can work in challenging terrain and transport enormous building supplies over long distances grows along with the country's development programs. Construction of infrastructure has started in several areas of the nation. As a result of rising real estate investment, forklift demand is rising.

Additionally, it is anticipated that during the projection period, rising government investments and the development of infrastructure globally would drive demand for forklift trucks. For instance, the Indian prime minister announced the nation's plans to invest $1.35 trillion between 2021 and 2025 in infrastructure development in order to boost the economy in August 2021. Forklift trucks are also used to move heavy or large materials, which boosts productivity and reduces site operating expenses.

In the upcoming years, the Indian warehousing industry will be significantly boosted by increased investments in infrastructure development in the nation and increased support for material handling equipment including forklifts and warehouse equipment.

KION India Pvt. Ltd. is a reliable name for its customer when it comes to designing, manufacturing, distributing services, and supporting Palletized Material Handling Equipment under the brand name OM for the Indian market. The brand looks forward to