WAREHOUSING INDUSTRY IN INDIA – PAST, PRESENT, AND FUTURE.

WAREHOUSING INDUSTRY IN INDIA – PAST, PRESENT, AND FUTURE.

Warehousing Industry is growing at a rapid pace, an estimated Annualised growth rate of 15% from 2018 to 2024.  India is gaining ground on the world Logistics index and climbing up the ladder. There are various factors, behind this growth rate. Most important is the overall growth of the Industries in India. With the modern methods and techniques being applied by the industries, the
warehousing infrastructure will play a vital part.
 
Modernization of the Transport system will also impact the growth of the Warehousing Industry. Till now the warehousing industry has been concentrated in down south , more than 50% warehousing and Logistics hubs being there. But Haryana in North is fast catching up with them. There is a Haryana Logistics and Warehousing Policy being implemented ( not in place right now ), with clear guidelines for the industry. This policy allows certain incentives to the new and existing players, hence encouraging more and more
companies to grow or shift focus.
 
Haryana enjoyed the location advantage, many freight corridors pass through the state. Haryana has many large industrial parks and Industrial towns, with the growing need for warehousing and logistics for them. Also, Delhi state is pushing out industries from Delhi, as NGT is coming hard on the unplanned growth of the small and big industries in Delhi state. Most of them are responsible for the
pollution factor in Delhi. On the other hand, Haryana offers more land, electricity, and water for the Industrial zones to develop. Many national and international warehousing hubs are already established and more are coming up soon. Haryana government is aggressively signing with the companies to establish the Logistics Hubs in the sate.
 
For the benefit of those, who are not a part of this industry, we must explain a few things before proceeding further.
 
What is a Warehouse – in simple language, any place which offers safe storage, with boundary walls, can be termed as a Warehouse. A place which offers storage, space for packaging, labeling etc.
 
What is Logistics – Any commercial activity involving Transportation, Storage, and distribution can be termed as Logistics.
 
As per the Haryana Government’s Logistics and Warehousing industry policy, one needs a minimum of 2 acres of land to establish a warehouse for Agricultural products. The unit should be located on a minimum 25-foot road, only then the license can be obtained for warehousing. For non Agricultural warehousing, one needs a minimum of 5 acres of land, located on a minimum 30 feet wide road.

Logistics parks – for developing Logistics park, the minimum are of land needed is 50 acres.
 
Haryana has many advantages, because of which the Logistics and Warehousing industry is growing at a rapid speed.

1.     Locational Advantage – Located nest to Delhi state, surround it from 03 sides. Close to the international airport. An integrated aviation hub is coming up in Hisar, for which Haryana needs to develop this industry. A couple of freight corridors pass through Haryana State.
 
2.     Availability of land at cheaper prices.
 
 3.     Availability of the workforce, both skilled and unskilled.
 
4.   Availability of good roads and other infrastructure to support the Industry.
 
5.     Housing for the workforce.
 
6.     Connectivity through roads and Railways.
 
7.     Definite policies and guidelines provided by the Government.
 
8.     Ease of doing business.
 
9.     Haryana houses many export-oriented units, which required the
warehousing and logistics facilities.
 
10.  Once the policy is in place, there would be incentives offered to the Industry.

In the past, the Warehousing and Logistics were not handled professionally and were carried out on the ad hock basis, with individual efforts. Growth was haphazard and limited.
 
Presently the governments in various states including the central government have released the potential and necessity of the planned growth of this Industry. Hence the steps are being taken to, organize and modernize the sector and many new policies are being implemented.
 
Future is promising, with a growth rate of 15% per annum over the next three to four years is phenomenal. This industry is going to provide jobs to thousands. Along with the Jobs, other infrastructure will also develop, to give healthy lifestyle to people engaged in the Warehousing and Logistics industry.