Another way to offer support to the warehousing sector would be to offer tax rebates or incentives to the cement or steel sectors which will, in turn, help in lowering the cost of constructing warehouses. The government should also take necessary policy initiatives to facilitate the better credit facility, low-interest rates and FDI into the warehousing sector so that the warehousing sector can grow and expand. So, the government can propose tax rebate to the warehousing companies so that they can invest more in constructing warehouses. Single window clearance facility with stipulated timelines for each approval can really help warehousing developers.Ĭonstructing a warehouse involves huge capital investment with Grade-A quality construction costs between Rs 1,400- Rs 1,600 per square feet.
Earlier, the demand space size for warehouses used to be 10,000-20,000 sqft which has shot up to big size warehousing space (200,000-400,000 square feet) - mainly due to the proliferation of e-commerce players, the government can propose certain relaxations in regulatory approvals to accelerate the pace of warehousing construction. The first and foremost concern is the time-consuming process of obtaining multiple approvals from various government departments for constructing a warehouse.
