Expanding the depth of reach to new age consumers

Arif A Siddiqui, Founder & Director, Coign Consulting on the India Finance Budget 2022

The warehousing and distribution industry sector will further solidify its position as the budget outlays an extremely large amount to set up multimodal warehousing and distribution centres and clusters. With the announcement of 25,000 km of new highways, the Gati Shakti Masterplan will boost new warehousing and logistics facilities across the country. This network master plan will expand the depth of reach to new age consumers, who are rapidly increasing as the country’s digital/internet penetration increases. Tier 2 and 3 cities will experience an increase in or new demand in terms of distribution and fulfilment centres and dark stores. The long-term success of the budget will only be possible with the alignment and integration of the respective state policies and plans. The warehousing sector will further gain as the regulatory and policy environment and digitisation are constantly evolving and getting more favourable, particularly at the state level. This will lead to better confidence to spend/invest in infrastructure and, in turn, increase the overall demand for

The warehousing sector will further gain as the regulatory and policy environment and digitisation are constantly evolving and getting more favourable, particularly at the state level

modern warehouses and distribution centres, be it ambient or cold. This will lead to more and more emphasis on Grade A specification warehouses that will be developed by large and small/local developers.