By Mr. Anshul Singhal, Managing Director, Welspun One & Chairperson of ASSOCHAM National Council on Logistics & Warehousing

As the Indian industrial real estate sector evolves, the Union Budget 2025 is the key to unlocking transformative growth through targeted policies and fiscal measures. To meet the diverse demands of the growing economy, enhanced infrastructural development, streamlined regulatory processes, and incentives for creating state-of-the-art logistics parks and warehouses are essential. This is because warehousing is a cornerstone of efficient supply chain management that significantly impacts domestic and international trade by ensuring seamless storage and distribution.

 Key interventions such as simplifying land acquisition, fostering sustainability through green building incentives, and reducing construction costs via innovative public-private partnerships can position India as a preferred investment destination. Moreover, Alternative Investment Funds (AIFs) have emerged as critical drivers of real estate financing. Expanding tax benefits and easing regulatory hurdles will encourage confidence and increased capital inflows into the warehousing sector. Extending the scope of section 72A of the Finance Act to classify real estate as a capital-intensive sector could further incentivize investments. Additionally, addressing GST-related issues, such as clarity on input tax credit claims for construction, will provide much-needed relief to developers and align with the government’s vision for ease of doing business.

 To drive the development of innovative, future-ready infrastructure, capital subsidies for large-scale warehousing projects are critical. While such projects, including multi-story infrastructure in urban centers, may not be cost-viable under today’s operational ecosystem, they are essential for addressing future challenges posed by unplanned urban development and rapidly growing populations, which impact citizens’ quality of life. Subsidies of up to 25%, similar to those offered in other essential industries, will encourage long-term investments that benefit consumers, industries, and India’s economic future. We remain optimistic that Union Budget 2025 will deliver these necessary reforms, propelling India toward becoming a global leader in industrial real estate