Mumbai, Mar 3 (KNN) India’s logistics and warehousing sector is witnessing rapid expansion, driven by supportive government policies, infrastructure enhancements, and technological advancements.

While tier 1 cities have traditionally been logistics hubs, the spotlight is now on tier 2 and 3 cities, which are experiencing unprecedented growth.

The surge is largely fuelled by a shift in consumer behaviour, with a substantial share of online shopping orders now originating from these regions.

The increased demand for e-commerce services has led businesses to establish distribution centres closer to consumers, reducing delivery times and improving efficiency.

Government initiatives such as the Urban Infrastructure Development Fund (UIDF) play a pivotal role in this transformation.

With an annual allocation of Rs 10,000 crore, the UIDF is facilitating infrastructure development in 459 tier 2 and 580 tier 3 cities, strengthening logistics networks and improving connectivity.

Additionally, India’s Vision 2047 initiative aims to position the country as a USD 30 trillion economy, with logistics playing a crucial role in streamlining supply chains and supporting industrial growth.

Enhanced road networks, warehousing facilities, and the adoption of smart logistics solutions are further accelerating progress.

Experts believe this expansion will lead to job creation, increased investments, and a more balanced economic landscape, bridging the gap between urban and semi-urban regions.

The logistics sector’s evolution in smaller cities marks a significant step toward achieving India’s long-term economic goals.

As companies continue to capitalise on these opportunities, tier 2 and 3 cities are poised to become key players in India’s logistics and warehousing ecosystem.

(KNN Bureau)