Investment # warehousing # manufacturing # GST#
India’s warehousing requirement is expected to grow at an annual average rate of 9% to 1,439 million sq. ft in 2019 from 919 million sq. ft in 2014,The government’s renewed focus on incentivizing the manufacturing sector in view of GST, is key to the growth of warehousing, adding that the logistics market will reap the benefits of this growth in coming years.
The additional demand for warehousing space per year will be around 104 million sq ft and will entail investments of about Rs.15,000-16,000 crore every year, it is estimated. The investments will go towards land acquisition and cost of construction.
Investment in warehouse can provide an opportunity of realizing returns in the range of 12%-20% per annum to investors willing to explore this sector.
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