Union Budget 2025: Industrial and Logistics Growth Poised for Major Boost

The latest union budget has set an ambitious roadmap for India's industrial and logistics sectors, emphasizing infrastructure upgrades to enhance efficiency and reduce costs. With a sharper focus on digital infrastructure, the budget aims to streamline supply chains, benefiting domestic manufacturing and industrial real estate.

A major highlight is the expansion of the PM Gati Shakti national multi-modal connectivity plan, which will see improvements in geospatial land records, enhanced air cargo facilities, and the introduction of the Bharat Trade Net platform to simplify trade procedure. Industry leaders believe these measures will accelerate logistics operations and attract investment.

"Manufacturing and logistics impetus will have the maximum impact on industrial and warehouse leasing activity across tier I and II cities of the country," said Badal Yagnik, chief executive officer of real estate consultancy Colliers India.

These reforms are expected to create a significant impact on industrial leasing activity, with demand for Grade A warehouses and industrial sheds anticipated to reach 30-40 million square feet in key markets.

The digital infrastructure under PM Gati Shakti is at the core of this transformation. The future success of logistics depends heavily on improved data mapping, which will secure private funding and boost operational performance to advance industry expansion. India stands to enhance its position as a global logistics center through recent technological breakthroughs that develop a unified, efficient supply chain system.