A deep structural shift is under way in India’s logistics sector, fuelled by policy reforms, sustained infrastructure spending and expanding demand from manufacturing, agriculture, retail and e-commerce. The expansion in the sector is being supported by landmark government initiatives such as the National Logistics Policy, PM Gati Shakti, the development of dedicated freight corridors and sustained investments in multimodal connectivity. Within this evolving ecosystem, warehousing infrastructure, spanning the agricultural, industrial and cold chain segments, has emerged as a critical growth engine. Warehousing is no longer a passive storage system, it is increasingly central to supply chain efficiency, inventory optimisation, cost reduction and service quality.
The expansion of warehousing is being shaped by several converging trends. In agriculture, rising foodgrain production, expanding public procurement and the push for scientific storage are driving investments in modern warehouses and silo infrastructure. In the industrial segment, growth in manufacturing, third-party logistics (3PL), omnichannel retailing and quick commerce is accelerating demand for Grade A warehousing facilities, particularly in Tier II and Tier III cities. At the same time, the cold chain segment is gaining strategic importance as India seeks to reduce post-harvest losses, strengthen pharmaceutical and vaccine supply chains, and support the export of perishables.
Capacity expansion for anchoring food security
Agricultural warehousing continues to form the backbone of India’s logistics and food management system, linking procurement, storage, distribution and price stabilisation. As of November 2025, the total covered and cover-and-plinth (CAP) storage capacity created for central pool foodgrain stocks stood at around 92 million metric tonnes (mmt). This includes roughly 82 mmt of covered storage and around 10 mmt of CAP storage, developed primarily by the Food Corporation of India (FCI) and state government agencies, with operational support from the Central Warehousing Corporation (CWC) and state warehousing corporations (SWCs).
Of this total storage, the FCI alone has created a storage capacity of around 48 mmt, with utilisation levels at 88 per cent, indicating a close alignment between procurement volumes and available storage. Notably, 67 per cent of the FCI’s capacity is hired, emphasising the sustained reliance on state agencies, warehousing corporations and private operators. This model allows flexibility during peak procurement seasons while reducing the capital burden of asset ownership. Regionally, the north zone dominates the FCI’s storage footprint (31 mmt), reflecting its central role in wheat and rice procurement. This is followed by the south (6.4 mmt), west (6.3 mmt) and east (3.6 mmt) zones, which together support procurement and distribution across diverse agroclimatic regions.
Further, state agencies, including SWCs and CWCs, also handle the storage of foodgrains. The share held by state agencies (including the SWCs) accounts for 43 mmt of storage capacity as of November 2025. The west zone leads with over 20 mmt, followed by the north zone at around 17 mmt, highlighting the concentration of storage in major procurement and consumption regions. Meanwhile, the CWC operates 741 warehouses with a total capacity of around 15 mmt, along with specialised assets such as rail-side warehouses, container freight stations, inland container depots (ICDs) and temperature-controlled facilities.
Besides capacity creation, regulatory oversight and market integration have improved significantly with the scaling up of the Warehousing Development and Regulatory Authority framework. More than 10,800 warehouses have been registered, and over 730,000 negotiable and electronic warehouse receipts have been issued as of September 2025. This has enhanced transparency, improved warehouse standards and expanded access to formal credit for farmers, traders and agri-enterprises.
Transition from conventional godowns to silo storage
While traditional godowns continue to dominate India’s agricultural storage landscape, silo storage is increasingly being positioned as a strategic alternative, particularly for wheat. Silos offer multiple advantages over conventional storage, including grain losses of less than 1 per cent, compared to 5-10 per cent in traditional godowns, as well as lower land requirements, mechanised handling and better inventory control.
The development of silos in India is gradually picking up pace. As of June 30, 2025, India had around 3 mmt of completed silo storage capacity across 48 locations, all of which have been operationalised. In addition, over 3 mmt is under construction at 87 locations, while over 2 mmt is under tendering at 54 locations. Punjab, Madhya Pradesh and Haryana together account for the majority of operational silo capacity, reflecting their prominence in wheat procurement.
In fact, of the total storage capacity with FCI, it has access to around 2 mmt of silo capacity, of which only 0.11 mmt is owned, with the remainder hired under public-private partnership (PPP) arrangements. Most silo projects have been developed under road-fed and rail-fed models, enabling efficient evacuation and reducing handling losses. Private participation has been led by players such as Adani Agri Logistics Limited, Snowman Logistics and the National Bulk Handling Corporation which have brought in technical expertise and operational efficiencies.
Grade A industrial warehousing assets drive expansion
India’s industrial warehousing market has scaled rapidly over the past decade, marked by a decisive shift towards Grade A facilities that meet global standards of design, compliance and operational efficiency. According to industry estimates, the industrial and warehousing market remained robust in 2025, with cumulative demand reaching an all-time high of 26.5 million square feet (sq. ft) across the top eight cities in the first nine months, an 11 per cent year-on-year increase and Grade A space absorption hitting record levels despite global trade uncertainties. While leasing in Q3 2025 moderated to 7 million sq. ft (down by 23 per cent year on year), activity is expected to rebound in the near future, supported by growth in the e-commerce and electronics sectors.
Among the top cities, the Delhi-National Capital Region, Chennai and Mumbai dominated, accounting for over 60 per cent of total Grade A warehousing space, with 3PL firms leading occupier demand, followed by engineering and e-commerce players. E-commerce leasing surged about 2.5 times year on year. New supply also stayed strong at 28.8 million sq. ft, primarily in the same key markets, which temporarily lifted vacancy rates even as rents continued to firm.
This growth is increasingly being shaped by manufacturing expansion under production-linked incentive (PLI) schemes, corridor-based development along expressways and dedicated freight routes, and the decentralisation of supply chains. Developers and occupiers are increasingly targeting Tier II and Tier III cities, where land availability, lower costs and proximity to consumption centres offer long-term advantages.
Closing gaps in cold storage and temperature-controlled movement
As of September 2025, India’s cold storage infrastructure crossed 40 mmt of capacity across more than 8,800 facilities, reinforcing its role in agri-food and pharmaceutical supply chains. The sector continues to shift from single-commodity storage towards integrated multicommodity cold chains, supported by government programmes. About 395 integrated cold chain projects have been approved since 2008, with 74 per cent operational as of June 2025. Further, policy momentum accelerated in July 2025, when additional central funding was approved to expand integrated cold-chain and value-addition infrastructure.
Moreover, operational and logistics-side developments highlight a growing focus on connectivity, scale and technology adoption. In June 2025, Snowman Logistics commissioned new temperature-controlled warehouses in Kolkata and Krishnapatnam, expanding palletised cold storage for seafood, dairy and pharma. This was followed in August 2025 by ColdStar Logistics opening a 3,500-pallet distribution hub in Visakhapatnam, strengthening eastern India’s port-linked cold-chain network. Multimodal integration advanced in September 2025 with the launch of refrigerated rail services linking inland ICDs to ports, and further in November 2025, when Western Railway operated its first dedicated reefer train from Gujarat to Pipavav port. These developments collectively reflect India’s transition towards a more connected, export-oriented and technology-enabled cold storage ecosystem.
Technology, ESG and new operating models
Warehousing in India is undergoing a rapid technological shift, driven by the need for higher throughput, accuracy and cost efficiency. Automation solutions such as automated storage and retrieval systems, autonomous mobile robots, robotic picking systems and advanced warehouse management systems are increasingly being adopted, particularly in e-commerce, retail and quick commerce operations. Sustainability considerations are also shaping new developments. Green building certifications, rooftop solar installations, energy-efficient lighting, rainwater harvesting and water recycling systems are being integrated into new warehouses, supported by the National Logistics Policy’s emphasis on green logistics. Environmental, social and governance (ESG)-compliant assets are gaining preference among institutional investors and global occupiers.
Furthermore, built-to-suit (BTS) warehousing has emerged as a preferred model for large occupiers seeking customised layouts, automation readiness and long-term operational certainty. BTS projects are increasingly being executed across manufacturing clusters and emerging consumption centres, enabling occupiers to align infrastructure with specific operational requirements.
Transformational road ahead
India’s warehousing and storage sector is poised for sustained growth, driven by rising agricultural output, manufacturing expansion and consumption-led demand. The future growth outlook remains structurally strong, supported by parallel expansion in agricultural, cold-chain and industrial infrastructure.
Agricultural warehousing capacity is projected to increase from around 240 mmt in 2023-24 to over 390 mmt by 2029-30, while silo storage capacity is expected to expand nearly tenfold from 3 mmt in 2025 to around 30 mmt in 2030, supported by the hub-and-spoke model and government action plans. Cold storage capacity, although currently insufficient, is set to grow steadily, with the cold-chain market value projected to exceed $13.5 billion by 2029, backed by PPP models, green financing and decentralised storage solutions.
In parallel, industrial warehousing demand will be led by e-commerce, 3PL players and omnichannel retail, driving accelerated absorption of Grade A, ESG-compliant warehouses. Together, these trends indicate a transition towards a more integrated, technology-driven and sustainable warehousing ecosystem, positioning India’s warehousing sector as a critical pillar of the country’s evolving logistics and supply chain infrastructure.
