India is undergoing a transformative phase in its infrastructure landscape, significantly influencing industrial land investments. Major projects like new highways, expanded airports, and dedicated freight corridors are opening up previously inaccessible areas for development. This has led developers and investors to aggressively acquire land to capitalize on the anticipated demand for industrial and warehousing spaces. In 2024 alone, around 2,335 acres were acquired across 23 cities, with projects worth nearly ₹62,000 crore underway. The infrastructure-led expansion is not just urban-centric but is penetrating Tier 2 and Tier 3 cities as well.
The government’s policy push, including initiatives like the National Industrial Corridor Development Programme (NICDP), is a driving force behind this boom. With the sanctioning of 12 smart industrial cities and an investment of ₹28,602 crore, the government aims to create modern, self-sustaining industrial ecosystems. These developments are aligned with the broader goals of Make in India and Aatmanirbhar Bharat, which seek to increase manufacturing output and reduce logistics costs. Enhanced connectivity through road, rail, and air infrastructure is attracting both domestic and global investors. As a result, industrial zones are being redefined as attractive long-term investment hubs.
The surge in infrastructure has also led to an unprecedented increase in foreign and private capital inflows into industrial real estate. The sector saw $2.5 billion in investments in 2024—a 190% jump from the previous year, signaling robust investor confidence. Cities like Mumbai and Delhi-NCR are leading in real estate equity investments, with Mumbai alone drawing $6.9 billion between 2022 and 2024. The focus is now shifting towards Grade A warehousing and logistics parks to meet the demands of e-commerce, retail, and manufacturing. This trend illustrates how infrastructure development is reshaping India’s industrial investment landscape.
