How modern logistics parks are shaping India’s trade future

India’s logistics landscape is passing through one of its most important transitions. The country’s rapid economic growth, rising consumption, and expanding manufacturing base have created an urgent need for modern logistics infrastructure. For many years, India relied on scattered warehouses, fragmented supply chains, and slow connectivity across states. This model held back efficiency, increased costs, and made it difficult for companies to plan long-term operations.

Over the past decade, however, the shift has been clear. Logistics parks have begun to take shape across major industrial corridors, city outskirts, and port-adjacent zones. These parks are no longer simple warehousing clusters. They are large, integrated spaces designed for storage, distribution, value-added services, light manufacturing, and multimodal cargo movement. Their rise is not accidental. It is deeply tied to the country’s policy direction, especially the National Logistics Policy (NLP) and the PM Gati Shakti programme, both of which have brought long-term planning, unified infrastructure mapping, and large capital flows into the sector.

As India sets its sights on a $5 trillion economy target in the coming years, the role of logistics parks becomes clearer. They are the physical backbone required to support trade, industry, and consumption at a much larger scale. Stakeholders across the ecosystem like the developers, global investors, infrastructure planners, and supply chain users agree that India is entering a decade where logistics parks will define productivity, competitiveness, and economic resilience.

To understand how this shift is unfolding, and what it means for India’s logistics future, one must look closely at the infrastructure push, private investment momentum, and the strategic choices made by leading developers across the country.

NLP, Gati Shakti boost logistics

India’s logistics sector has long been held back by high costs and inefficiencies. Estimates show that logistics costs have hovered around 7 to 8% of GDP, higher than many competing economies. The government’s effort to address this gap took a major step with the launch of the National Logistics Policy in 2022. The aim is simple: reduce logistics costs, improve efficiency, and create an integrated ecosystem where goods can move faster and more predictably.

Alongside NLP, the PM Gati Shakti National Master Plan brought over 16 ministries onto a single digital platform. This tool maps existing and planned infrastructure including roads, ports, airports, railway lines, industrial corridors and helps identify gaps before new assets are built. For developers of logistics parks, this has been a turning point. Earlier, decisions on site selection involved uncertainty around future connectivity. Today, companies can make informed, long-term choices backed by government planning visibility.

Large expressways, new freight corridors, port modernisation programmes, and multimodal logistics parks under Gati Shakti have already begun shaping the next wave of industrial activity. These projects reduce travel times, open new corridors for manufacturing, and create predictable access to regional markets.

This change is clearly visible to developers on the ground. IndoSpace, one of India’s largest players in the sector, says that infrastructure growth is reshaping how logistics parks are planned. Its MD & CEO, Anshuman Singh, explains that every park is now evaluated through a multimodal lens—proximity to highways, ports, industrial clusters, and long-term corridor development. He points out that corridors like Chakan–Talegaon, Bhiwandi, and newer routes in Chennai are emerging because expressways, freight links, and airport developments are transforming their logistics potential.

IndoSpace’s strategy not only responds to infrastructure expansion but anticipates it, by selecting land in locations that will become key nodes over the next five to ten years. This forward-looking approach reflects how policy-driven infrastructure is giving developers both confidence and clarity.

The shift from warehouses to ecosystems
The biggest change in India’s logistics sector is the move from basic warehouses to integrated logistics hubs. These parks combine warehousing, value-added services, cold storage, distribution centres, and often light manufacturing. Many also include transport terminals, container yards, and in-city distribution nodes. This shift reflects the way supply chains are evolving globally, with speed, flexibility, and technology becoming central.

Blackstone’s logistics platform, Horizon Industrial Parks, manages one of the largest Grade A industrial portfolios in the country, with nearly 60 million sq ft across major regions. Its assets support fast-growing sectors such as e-commerce, third-party logistics, automotive, aerospace, FMCG, engineering, and retail. The portfolio mirrors the broader shift happening in India, businesses want high-quality, scalable infrastructure that supports modern operations.

According to Urvish Rambhia, CEO of Horizon Industrial Parks, India’s attractiveness comes from rising incomes, expanding manufacturing, fast e-commerce adoption, and strong policy support. He notes that the sector’s infrastructure status and favourable investment climate have brought substantial private equity and foreign direct investment into logistics real estate. A growing interest in technology-led operations of automation, robotics, IoT, warehouse management systems has also encouraged companies to seek modern facilities rather than legacy storage spaces.

As supply chains become more digital and more demand-driven, logistics parks are evolving into resilient ecosystems. They support not just storage, but the entire journey of goods from production to delivery. For a country the size of India, this evolution is essential, especially as consumption spreads deeper into Tier 2 and Tier 3 cities.

Sustainability as a core feature
Another important trend shaping the rise of India’s logistics parks is the strong push for sustainability. This shift is driven by both regulation and market demand. Large multinational firms, e-commerce companies, and manufacturers now include sustainability as a key criterion when selecting logistics partners.

ESR India, one of the major developers in the sector, has built sustainability into every part of its design, construction, and operations. Its CEO, Abhijit Malkani, emphasises that sustainability is no longer optional; it is the foundation of future-ready logistics assets.

India’s broader focus on renewable energy has supported this transition. In recent years, rooftop and utility-scale solar installations have increased sharply. ESR India has installed 1.5 MW of rooftop solar capacity and plans to grow this to around 150 MW by mid-2025. Features like skylights for natural lighting, energy-efficient building designs, rainwater harvesting, water recycling systems, EV charging stations, green landscaping, and human-centric amenities are now becoming standard in Grade A parks.

These features are not only good for the environment but also practical for tenants. Energy-efficient parks help cut operational costs, improve working environments, and support long-term sustainability targets. Human-centric designs such as walking paths, sports areas, and thoughtful green spaces contribute to better employee experience and retention, which is increasingly important for large-scale supply chain operations.

The wider shift suggests that modern logistics parks in India are aligning with global ESG expectations, making them attractive investments for global capital.

Global capital finds a long-term home

India’s logistics parks are benefiting from strong investor interest, especially from global institutional investors. The demand drivers are structural and long-term: consumption growth, manufacturing expansion, and the formalisation of supply chains. Investors now see logistics real estate not as peripheral, but as a central asset class within core infrastructure.

IndoSpace notes that institutional capital seeks governance, scalability, and long-term value creation. Over the past decade, the sector has gained maturity and transparency, creating confidence among investors. Global institutions prefer platforms that combine development capability with operational excellence, and India’s best-known logistics real estate platforms have built trust through discipline, sustainable practices, and stable returns.

ESR India also highlights strong investor confidence. “In 2024, institutional investments in this space reached US$1.96 billion, rising sharply from US$ 645.8 million in 2023, a 203 percent year-on-year increase”, says Abhijit Malkani, CEO, ESR. Over 80 percent of this came from foreign capital. Investors are looking for large, scalable portfolios that meet modern standards, are ESG-compliant, and are equipped for advanced supply chain operations.

Blackstone’s continued expansion with Horizon Industrial Parks further reflects this confidence. With assets across major regions, including large clusters near major cities, Blackstone sees long-term opportunity as India integrates technology, sustainability, and modern infrastructure. The company believes that logistics parks will be central to India’s economic transformation, creating jobs, improving efficiency, and strengthening the country’s global competitiveness.

This combination of robust demand, strong policy support, and rising investment interest signals a sector entering a long growth cycle.

New demand clusters emerging
The demand for logistics parks is being driven by several sectors. E-commerce continues to lead, supported by rising digital adoption, growing middle-class consumption, and faster delivery expectations. Quick commerce, where delivery speeds can be as short as 20 minutes, is reshaping the need for in-city distribution hubs and multi-level facilities.

Manufacturing is another major contributor, with sectors like automotive, electronics, pharmaceuticals, engineering, and FMCG expanding across major corridors. Government schemes such as Production-Linked Incentives (PLI) have encouraged manufacturing investments, pushing companies to seek scalable logistics infrastructure near their plants.

ESR India highlights the growing need for strategically located, high-quality, and future-ready logistics facilities across in-city, regional, and port-adjacent nodes. The company’s first multi-level urban distribution centre in Delhi is an example of how quick commerce and urban density are changing the design of logistics assets. Similarly, new parks in Chakan, Taloja, Oragadam, and other hubs are attracting both Indian and international manufacturers.

Blackstone’s Horizon Industrial Parks also sees demand from a wide range of industries, from automotive and aerospace to retail and e-commerce. This diversity creates resilience and supports consistent growth.

The combined influence of these sectors is pushing developers to focus on flexibility, scalability, and integrated facilities that support different types of operations. The shift towards omnichannel retail has made logistics parks central to both online and offline supply chains.

New corridors shape the next phase of growth

The geography of India’s logistics parks is expanding. Earlier, the bulk of warehousing activity was concentrated around Mumbai, Delhi-NCR, Bengaluru, Chennai, and Pune. Today, new corridors are emerging as infrastructure improves and manufacturing spreads.

IndoSpace identifies several growth hotspots including the Delhi–Mumbai Industrial Corridor (DMIC), Chennai–Bengaluru Industrial Corridor (CBIC), Eastern Freight Corridor, and new hubs in Gujarat and Central India. These regions are gaining traction due to improved connectivity, deeper manufacturing ecosystems, and favourable state policies.

Northern India is catching up quickly with the help of multimodal linkages and new expressways. Western and Southern India continue to lead due to strong industrial clusters, port access, and established consumer markets.

ESR India sees growing interest in port-adjacent facilities and last-mile hubs near major cities. Blackstone’s portfolio also includes major locations that serve as regional centres along critical freight routes.

The rise of Tier 2 and Tier 3 cities is an important trend. As consumption grows in cities such as Indore, Surat, Lucknow, Jaipur, Coimbatore, and Bhubaneswar, logistics parks near these markets will gain prominence. Their emergence supports balanced regional development and reduces pressure on major metros.

Technology as the invisible backbone
Technology plays an increasingly central role in modern logistics parks. Automation, robotics, IoT sensors, warehouse management systems, and AI-driven planning tools are becoming common features. These technologies help improve inventory accuracy, speed up movement, reduce downtime, and optimise space utilisation.

For investors and tenants, technology adds predictability and improves operational performance. It also supports sustainability goals by helping track energy usage, water management, and carbon impact.

The adoption of technology reflects India’s shift towards more efficient, integrated supply chains where data and physical assets work together. This trend will continue to deepen as industries become more digital, and as supply chains become more sensitive to speed and reliability.

Logistics parks power growth

India’s ambition to become a $5 trillion economy requires a logistics backbone that can support rapid growth in consumption, manufacturing, and exports. Logistics parks are central to this effort. They create scale, reduce inefficiencies, and make supply chains more agile. Their role goes beyond storage; they are hubs where manufacturing, mobility, and technology converge.

Developers such as IndoSpace, ESR India, and Horizon Industrial Parks reflect how the sector is evolving, expanding into new corridors, integrating sustainability, adopting technology, and attracting long-term global investment.

The next decade will likely see logistics parks becoming even more critical as India expands its transport networks, develops multimodal hubs, and creates a more connected, competitive, and resilient supply chain ecosystem. While challenges remain, such as land availability, urban congestion, and the need for skilled labour, the direction is clear. Policy, investment, and demand are aligned in a way that gives the sector strong momentum.

India’s logistics parks are not just part of its economic story but they are helping shape it. Their rise marks a shift towards a more efficient, modern, and forward-looking logistics system, one that supports the country’s long-term aspirations and strengthens its position in the global economy.