What are the key trends in the warehousing market in India?

In the past few years, India’s logistics and warehousing market is going through a transformation. With the concept of e-commerce growing pace, the need for an efficient supply chain is paramount. The contribution of this industry to the economic growth of the country is duly recognized and the government has been taking steps to implement focussed reforms to enhance the warehousing industry and attract investments.

As the warehousing market in India gains prominence with the entry of several domestic players and global leaders, the demand for warehousing facilities that match up to global standards has grown. As the market matures, there are a few trends that will define the Indian warehousing market.

1. The GST effect: according to a survey conducted on occupiers of warehouses in the country, with regards to their views on the impact of GST on business and operations, a majority of the respondents were in favour of the implementation of GST. Post GST implementation, warehouse occupiers are driven by the desire of consolidation and expansion activities across the country. A unified taxation structure is required for the emergence of a consolidated market. 
2. Moving beyond the obvious epicentres: Prior to GST, a bulk of the warehouses were situated in Delhi National Capital Region (NCR) Mumbai Metropolitan Region (MMR) and Bangalore. In 2016, smaller cities such as Hyderabad, Kolkata and Pune saw the setting up of warehouses. 
3. Innovation to drive efficiency and cost saving: Technological advancements will shape the overall functioning of the warehousing market in India. Software that enables improved fleet management though RFID system for inventory identification,  live tracking of goods, automated pallet storage, amongst others are being adopted almost everywhere. 

The Goods and Services Tax (GST) has improved the Indian warehousing market’s chances of competing globally by implementing a uniform taxation system and encouraging structural change in operation dynamics for the warehousing segment.