Earlier this year, before the Honorable Finance Minister Smt. Nirmala Sitharaman tabled the interim budget, I briefly touched upon the need for easing land acquisition for warehouse development through PPP models, echoing the sentiment of the industrial real estate sector. With the Honorable Finance Minister announcing the facilitation of “Plug-n-Play parks” across 100 cities in the recent budget proposal, I am sure many in the industry will consider their voices heard. What’s more, this was merely one of many welcome moves that the government announced, promising a boost to the nation’s efforts towards becoming a developed economy by 2047.
Plug-n-Play industrial parks: A shared vision
The government’s announcement of supporting the development of a hundred Plug-n-Play parks across the country, along with the sanctioning of 12 industrial parks as part of the National Industrial Corridor Development Programme (NICDP), couldn’t have come at a better time. IndoSpace — having developed 52 Grade-A logistics parks with Plug-n-Play capability across the country — can attest to the necessity and impact of this move. As we continue to develop more Grade-A spaces, knowing that the government shares this vision of upgrading India’s industrial and logistics infrastructure will add further impetus to our growth. Without a doubt, this will transform not just industrial development but also urban planning in the concerned regions, stimulating economic growth.
Need for private sector participation to develop e-commerce hubs
In addition to the need for Plug-n-Play facilities the need for specialized e-commerce hubs to bring trade and export under one roof was brought to the forefront. To meet this demand, private sector participation is crucial. By investing in and developing these hubs, IndoSpace is trying to bring in the necessary infrastructure and technology to enhance efficiency and scalability. This collaboration will not only speed up the establishment of these hubs but also integrate advanced technologies, improving logistics and customer service. As India aims to become a global e-commerce leader, the joint efforts of both public and private sectors will be key to driving industry growth and ensuring seamless operations.
Increased demand for cold chain storage near consumption centers
The Honorable Finance Minister highlighted the need for special cold storage facilities by proposing a plan to set up large-scale clusters for vegetable production closer to major consumption centers. This was further emphasized by the planned support for vegetable supply chain startups. As highlighted in the 2024 budget, establishing Grade-A parks provides a crucial platform for expanding specialized facilities like cold storage. This initiative will enable companies to efficiently manage perishable goods, pharmaceuticals, and other temperature-sensitive products, ensuring their quality and safety from production to consumption.
2024 budget on real estate: Government reinforces logistics as key driver of economic prosperity
The 2024 budget, among many other things, is a cause of optimism for Indian industry, especially the industrial real estate sector. It reemphasizes the fact the government views the industrial and logistics infrastructure as the cornerstone of economic prosperity. Given enough time, these initiatives will not just be appreciated by those within the logistics sector, but also by the wide spectrum of stakeholders across the Indian economy.
Rajesh Jaggi
Vice Chairman, Real Estate – Everstone Group