India’s manufacturing ecosystem is entering a new phase of sustained expansion, with manufacturing space leasing projected to reach 30–32 million sq ft by 2030, according to the latest report by Savills India, “Beyond Make in India: The Rise of Made by India.”
The report highlights a structural shift in India’s industrial landscape, driven by capacity expansion, localisation, supply-chain diversification and investments in high-value manufacturing.
📈 Key trends shaping India’s manufacturing growth
🔹 30% CAGR – Manufacturing space leasing expanded at around 30% CAGR between 2020 and 2025.
🔹 30–32 million sq ft – Leasing demand is projected to reach this level by 2030.
🔹 7–9% CAGR – Savills India expects manufacturing leasing to grow at this rate between 2025 and 2030.
🔹 Pune leads – Pune recorded 26.7 million sq ft of manufacturing demand, followed by Chennai at 9.4 million sq ft and Bengaluru.
🔹 Emerging hubs gaining momentum – NCR, Hosur and Ahmedabad are increasingly attracting manufacturing investments.
🚗 Auto & Electronics remain key demand drivers
The automotive and auto-components sector accounted for 29% of manufacturing space leasing between 2020 and 2025.
This was followed by:
• Electrical & Electronics – 18%
• Machinery & Equipment – 9%
• Renewable Energy – 8%
Together, automotive and electrical/electronics accounted for nearly half of total manufacturing leasing demand.
🏗️ Bigger & better industrial facilities
Manufacturers are increasingly moving towards larger, Grade-A industrial facilities.
The average space leased increased from approximately 71,000 sq ft in 2022 to 94,000 sq ft in 2025.
This reflects rising demand for facilities capable of supporting:
⚙️ Automation
🤖 Advanced manufacturing
🌱 Sustainability
📦 Supply-chain efficiency
📈 Future expansion
💻 Technology adoption
🌍 Global manufacturers continue to expand in India
International occupiers remain an important source of manufacturing demand.
Between 2020 and 2025:
🇪🇺 Europe – 44%
🌏 APAC – 31%
🇺🇸 Americas – 24%
🌍 Middle East – 1%
🔋 The next wave of manufacturing
Going forward, India’s industrial real estate demand is expected to increasingly come from semiconductors, EVs, electronics, batteries & energy storage, renewable energy, aerospace & defence, alongside established sectors such as automotive and machinery.
The larger story is the evolution from “Make in India” to “Made by India” — with India increasingly building not only manufacturing capacity, but also technology, capabilities, supply-chain resilience and export competitiveness.
This could create significant opportunities for industrial land, ready-to-move manufacturing facilities, industrial parks and Grade-A warehouses across both established and emerging manufacturing clusters.
India’s next manufacturing opportunity may not just be about building more factories — it will be about building a stronger industrial ecosystem. 🇮🇳
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