India's factory space demand is set for a big jump

India's demand for factory space is expected to surge, with leasing projected to reach 30-32 million square feet annually by 2030, up from 21.3 million square feet in 2025, according to a report. This growth is fueled by manufacturing capacity expansion, localization efforts, and the rise of high-value sectors like electronics, semiconductors, renewables, and automobiles.

India boasts one of the world's largest industrial land ecosystems, comprising over 4,249 industrial parks spanning 1.6 million acres, with more than 253,600 acres readily available for development. Government initiatives such as Make in India, the PLI scheme, and Atmanirbhar Bharat, coupled with shifting global supply chains, are propelling India's transition from a 'Make in India' to a 'Made by India' manufacturing hub.

The leasing of manufacturing space is expanding nationwide, with key hubs including Pune, Chennai, and Bengaluru, while emerging markets like Hosur and Ahmedabad are gaining traction. The demand for manufacturing space is driving the move from a cost-led ecosystem to a capability-led one, anchored in innovation, supply chain resilience, and export competitiveness.

Sectors such as auto and auto components, electrical and electronics, machinery and equipment, renewable energy, and metal products are contributing to the growth, reflecting the broadening of India's manufacturing base. European and APAC occupiers dominate manufacturing space leasing, with demand shifting towards larger, institutional-grade facilities capable of supporting automation, scalability, and sustainability.