CBRE Research in Q2 2017 conducted a survey of leading occupiers of the industrial and logistics (I&L) sector in India, in order to gauge their sentiments about the potential opportunities offered and challenges posed by the GST. Two years later, as the dust settles around the GST, we again reached out to these occupiers to understand how well they have adjusted to this new tax regime, how are they undertaking their operations presently, and what is really driving the sudden growth of the I&L sector in India. The second report in this series looks closely at the impact of this new tax regime across the four stages of an entire lifecycle of a warehouse:

  • Planning - Occupiers’ intent to expand operations was quite visible as 40% of our respondents indicated that they would increase the number of warehouses in the post-GST era.
  • Building - Respondents highlighted quality of space (about 90%) and large-sized, efficient warehouses (about 75%) as the most important factors while selecting the location of a facility.
  • Transacting - Several policies (both proposed and implemented), along with the grant of ‘infrastructure status’ to the logistics sector, led to more than USD 500 million being invested in acquiring I&L assets in India during 2017- H1 2019.
  • Managing / Operations & Maintenance - Respondents were positive about the impact of GST across the entire supply chain – about 70% said they would optimize their sourcing models.

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