India’s manufacturing sector is undergoing a dynamic transformation, backed by expanding industrial infrastructure, rising logistics efficiency, and enhanced support from government-backed initiatives. According to a new survey conducted by Cushman & Wakefield, involving 94 senior executives from the manufacturing and logistics sectors, an overwhelming 97% of respondents acknowledged notable improvements in Grade-A warehousing availability—a significant indicator of progress for India’s industrial backbone.

Despite the infrastructural progress, India currently offers only 0.2 square feet of quality warehousing space per urban resident, a stark contrast to China’s 8.6 and the United States’ 47.3. However, the rapid emergence of plug-and-play industrial parks is helping bridge this gap. These parks provide ready-to-move-in facilities with pre-approved clearances, utilities, and connectivity, allowing businesses to commence operations quickly and efficiently, a critical advantage in today’s competitive manufacturing environment.

This shift is helping instill confidence among manufacturers, with 88% of surveyed leaders stating they are scaling up operations in response to better logistics infrastructure. Additionally, over 95% have reported benefits from improved access to multimodal logistics, largely enabled by large-scale government efforts in transforming the country’s transport and warehousing networks.

The survey also highlights optimism surrounding major national infrastructure programmes such as Bharatmala, Sagarmala, Dedicated Freight Corridors, and the National Industrial Corridor Development initiative. These strategic projects are designed to connect industrial hubs to ports, highways, and rail networks, thereby reducing turnaround times and enhancing the overall competitiveness of Indian manufacturing. Notably, 86% of respondents affirmed that these programmes have had a positive impact on their business operations.

One of the standout findings of the Cushman & Wakefield survey is that 70% of companies are now willing to expand into Tier II and Tier III cities. This shift is attributed to improved connectivity, lower operational costs, and the development of regional infrastructure. Plug-and-play industrial parks in such locations not only reduce entry barriers for new businesses but also stimulate local economies and create employment opportunities, further reinforcing the government's Make in India mission.

While the outlook is positive, the survey acknowledges persistent challenges in India's industrial growth story. These include high logistics costs, limited warehousing capacity, skilled labour shortages, and insufficient value addition in manufacturing. Addressing these issues is key to sustaining momentum and ensuring India evolves into a global manufacturing hub.

Encouragingly, the ecosystem is responding. The expansion of plug-and-play infrastructure and multimodal logistics networks is accompanied by targeted policy support aimed at improving Micro, Small, and Medium Enterprises (MSMEs). These businesses form the backbone of India’s manufacturing ecosystem, and focused investments in productivity enhancement, upskilling, and digitalisation are expected to significantly elevate output quality and global competitiveness.

Grade-A warehousing development, often located within or near these plug-and-play zones, is also on the rise. Such facilities meet modern specifications and are compliant with global standards, a key consideration for export-oriented manufacturers and multinational corporations. Many of these parks are strategically positioned along national and state highways, railway terminals, and even near upcoming multi-modal logistics parks, offering seamless integration for both domestic supply chains and international trade.

Moreover, the convergence of government schemes such as PM Gati Shakti, Make in India, and National Logistics Policy has created a comprehensive framework to support end-to-end manufacturing operations—from production and packaging to storage and final-mile delivery. The coordination among ministries and state governments under these schemes is further streamlining land acquisition, environmental approvals, and tax incentives.

The survey reveals that logistics is no longer just a support function; it has become a strategic pillar in boardroom decisions. Companies are making location choices based not just on raw material availability but on connectivity, digital infrastructure, and supply chain resilience. Industrial zones that offer plug-and-play benefits are thus becoming preferred destinations.

Significantly, India’s warehousing market—currently lagging global peers—is expected to grow exponentially as demand for built-to-suit and on-demand logistics infrastructure rises. Leading real estate developers and industrial estate planners are increasingly collaborating with logistics providers and manufacturing firms to offer tailored solutions, reducing capital expenditure and setup times for tenants.

With the global manufacturing landscape undergoing realignment, especially post-COVID and amid rising geopolitical tensions, India is well-positioned to emerge as a preferred manufacturing alternative. Companies seeking a China-plus-one strategy are already looking at Indian states offering industry-friendly policies, low-cost manpower, and growing internal consumption.

Furthermore, India’s demographic dividend, combined with a strong digital economy, offers a competitive advantage. Many plug-and-play parks now include smart utilities, renewable energy options, automated warehousing, and digital tracking tools, making them attractive for Industry 4.0-compliant operations.

In terms of sustainability, many of these parks are adopting green building certifications, solar rooftops, and waste management systems, aligning with the global focus on Environmental, Social, and Governance (ESG) compliance. For export-focused businesses, this adds value in markets where sustainability is a key differentiator.

In conclusion, the growth of plug-and-play industrial parks in India, backed by comprehensive logistics and infrastructure reforms, is creating an enabling environment for manufacturing sector growth. With 88% of companies scaling operations, 70% ready to explore new regional markets, and over 95% reporting improved logistics access, the signs point to a manufacturing ecosystem on the rise. The key going forward will be to sustain the momentum, address operational bottlenecks, and nurture local manufacturing capabilities—paving the way for India to become a true global manufacturing powerhouse.

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