E-commerce continues to drive demand for logistics and warehousing space in the country and has attracted a lot of interest from developers and private equity players, property consultant CBRE said.
"With the logistics and industrial segment witnessing significant development, there is a lot of interest from both developers and private equity investment," CBRE South Asia Managing Director, Advisory and Transaction Services, Ram Chandnani said in a statement.
The government's investor-friendly investment policies, improving domestic economy and progressive legislative reforms are all steps boosting the sector, he said at a conference here.
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"China is ranked 27th but India is not too far behind," said M T Murthy, Member (Operations) - India Post, Ministry of Communication and Information.
Stating that lack of adequate infrastructure has slowed down India's economy in the past, Murthy said the government is committed towards capacity building.
E-commerce is playing a major role in driving up the demand in logistics that witnessed a growth of 57 per cent between 2009 and 2015, the statement said.
"India Post now has 700 e-commerce partners who rely on the government for their service delivery," Murthy said.
According to CBRE, nearly 2 million sq ft of warehousing space was taken up by e-commerce firms in 2015, which is a significant jump, as the share of the sector rose from a meagre 2 per cent of the total warehousing demand in 2012, to around 22 per cent during 2015.