New Delhi, Aug 20: India’s warehousing sector is heading into the second half of 2026 with a positive outlook, supported by expanding manufacturing activity, rising demand from third-party logistics (3PL) companies and the need for more efficient supply chains.

According to a recent industry assessment, businesses are increasingly seeking modern warehouse facilities as they expand production, strengthen distribution networks and respond to growing demand from consumers.

The trend is already visible in the market. Warehousing leasing across India’s top eight cities reached around 19.3 million sq ft in the first quarter of 2026, registering a 15 per cent year-on-year increase. Manufacturing and 3PL companies were among the key drivers of this activity.

The growing role of 3PL companies is particularly significant. Businesses are increasingly outsourcing logistics operations to specialised providers, allowing them to focus on their core activities while improving storage, transportation and distribution efficiency.

Manufacturing is also creating fresh demand for warehouse space as companies expand their production capabilities and build more resilient supply chains. Policy support, infrastructure development and India’s growing role in global manufacturing are adding to the sector’s long-term potential.

The growth is not limited to established logistics hubs. Improving road connectivity, industrial development and rising consumption are helping Tier-2 and Tier-3 cities emerge as new warehousing destinations, giving businesses more options to locate facilities closer to manufacturing centres and consumers.

For consumers, stronger warehousing infrastructure can translate into faster movement of goods and more efficient delivery networks. For businesses, modern facilities can help reduce logistical delays, improve inventory management and make supply chains more flexible.

The sector’s expansion is therefore becoming an important part of India’s broader economic story, linking manufacturing, logistics, e-commerce and consumption. With these demand drivers remaining strong, India’s warehousing market is expected to maintain momentum through the remainder of 2026.