Delhi-based WAI president seeks fewer permissions to set up warehouses nationwide
India’s warehousing sector stands at a pivotal crossroads. As demand for supply chain infrastructure surges amid the country’s manufacturing and e-commerce boom, industry leaders are calling for urgent policy reforms to clear the bottlenecks strangling growth — from cumbersome clearance systems to disorganised land use in cities.
Speaking on the sidelines of the Indian Warehousing Show 2025, Manu Raj Bhalla, President of the Warehousing Association of India (WAI), said the logistics industry has begun benefiting from the government’s push to improve ease of doing business, but major roadblocks remain. Chief among them is the enormous number of permissions—estimated to be as high as 60 per facility—that must be obtained before establishing a warehouse. “While reforms have started, there’s still an overwhelming amount of red tape,” Bhalla said, “and that’s holding back faster, more sustainable expansion. We need a single-window clearance mechanism across states and central agencies.”
The need for streamlined regulation comes as India positions itself as a rising global logistics hub. Rapid growth in e-commerce, manufacturing, and quick commerce has dramatically increased the need for reliable warehousing. According to government estimates, India’s warehousing capacity has more than doubled over the past decade, and logistics now contributes nearly 14% to the national GDP. The ambition is to bring that cost down to single digits by integrating technology and improving supply chain efficiency. But despite this growth trajectory, structural challenges remain. The warehousing industry is largely dependent on land availability and zoning flexibility—both of which fall under state jurisdiction. Different states follow varying rules for land use conversion, making it cumbersome for developers to set up facilities in strategically vital areas, especially near urban consumption centres.
“There is no consistency in how warehousing is treated across India’s cities. Some states have marked logistics zones, while others continue to treat warehouse development as ad hoc industrial activity,” Bhalla explained. “That results in long delays, unpredictable costs, and often, unsustainable locations.” Urban fulfilment centres, which are critical for same-day delivery in dense metros, are a particular casualty of this policy vacuum. Bhalla noted that the lack of dedicated logistics zones within cities means warehouses are often set up in haphazard locations, leading to operational inefficiencies and safety risks. The WAI has submitted an urban logistics policy framework to several state governments in a bid to promote orderly and sustainable warehouse infrastructure within city limits.
Alongside policy roadblocks, the industry is also undergoing a technological transformation. Artificial intelligence (AI), blockchain integration, and real-time inventory systems are being rapidly adopted by larger players to streamline supply chains, cut costs, and improve productivity. Yet, smaller warehouses, particularly those servicing Tier 2 and Tier 3 cities, lag behind in digital adoption due to limited resources and unclear ROI models. According to Bhalla, the rapid rise of e-commerce and quick commerce is pushing warehouses to become more agile and digitally integrated. “Some of the best-run warehouses in India today are using AI for demand forecasting, robotic picking systems, and cloud-based inventory management,” he said. “But the tech gap between organised and unorganised players is growing, and unless that’s addressed, we risk creating a two-speed logistics sector.”
This digital divide also impacts sustainability. While advanced warehouses are adopting green technologies—such as solar rooftops, smart energy monitoring, and EV-compatible loading docks—others continue to rely on high-emission equipment and inefficient layouts. Bhalla warned that this inconsistency could become a barrier for Indian exports, particularly with new international regulations like the European Union’s Carbon Border Adjustment Mechanism (CBAM), which will penalise imports from carbon-heavy supply chains. There are also implications for India’s net zero targets. As one of the most land- and energy-intensive infrastructure sectors, warehousing must become a key player in the nation’s decarbonisation journey. “Urban logistics is not just about faster deliveries. It’s about climate-resilient cities,” Bhalla said. “Warehouses can be sustainability accelerators if we plan them right—with rainwater harvesting, solar energy, and low-carbon materials.”
He further urged that warehousing be treated as an essential component of smart cities planning. “We talk about transit-oriented development and smart mobility, but last-mile logistics is a blind spot. It’s time that changed.” Looking ahead, the WAI has proposed a standardised national warehouse policy that includes land-use simplification, technology incentives, and single-window clearances. “If we get this right,” Bhalla concluded, “India can lead not only in manufacturing but in clean, efficient, and inclusive logistics. But we can’t afford to wait.”
With warehousing fast becoming the backbone of India’s economic ambitions, the country’s ability to reform its regulatory and land systems will determine whether it becomes a global logistics powerhouse—or another case of great potential, held back by old rules.
