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India’s major logistics markets recorded significantly faster rental growth than the broader Asia-Pacific region in the first half of 2026, as manufacturing activity, domestic consumption and supply-chain diversification continued to support demand for modern warehousing space.
Data from Knight Frank shows prime logistics rents increased 5.3% year-on-year in Mumbai, 5.2% in Delhi-NCR and 4.4% in Bengaluru. By comparison, logistics rents across the Asia-Pacific market increased 1.2% on a half-year-on-half-year basis during the same period.
The stronger performance in India reflects sustained requirements from manufacturers, retailers, e-commerce companies and third-party logistics providers. Companies are increasingly looking for facilities capable of handling larger inventories, automation and more complex distribution networks.
Mumbai posted the highest annual rental growth among the three Indian markets tracked by Knight Frank. Delhi-NCR recorded prime rents of ₹22.30 per sq ft per month. In Bengaluru, prime logistics rents rose 2.2% over six months and 4.4% annually to ₹23.50 per sq ft per month.
The rental gains come as occupiers become more selective about the type and location of logistics facilities they lease. Rather than simply adding capacity, companies are increasingly assessing warehouse efficiency, connectivity, technology integration and the ability of facilities to support more sophisticated supply-chain operations.
This has strengthened demand for professionally managed, institutional-grade warehouses, particularly along established manufacturing and consumption corridors. The trend also has implications for developers and investors. Rising rents in established logistics markets are improving the potential returns from modern industrial and warehousing assets, while occupier requirements are encouraging larger and better-specified developments.
India’s rental performance stands in contrast to a more moderate logistics property market across Asia-Pacific. Knight Frank data showed that 15 of the 18 cities tracked in the region recorded either stable or higher rents during the period, although overall rental growth remained restrained.
Higher availability in some East Asian markets has limited pricing pressure. Leasing activity in several parts of the region is increasingly being driven by companies relocating, consolidating facilities or moving into better-quality warehouses rather than by significant expansion of their overall logistics footprints.
The regional outlook is also being shaped by investments in semiconductor and advanced manufacturing supply chains. Such industries typically require specialised logistics infrastructure and could generate additional demand for strategically located warehousing and industrial facilities.
For India, the combination of manufacturing expansion, domestic consumption and efforts by companies to diversify supply chains provides a relatively strong demand base for logistics real estate.
The market is therefore moving beyond the earlier emphasis on adding warehouse capacity. Location, operating efficiency, facility specifications and the ability to support increasingly complex supply chains are becoming more important factors in determining demand and rental performance.
India’s leading logistics hubs are consequently entering the next phase of the property cycle with rental growth running ahead of the broader Asia-Pacific market, although the pace of future increases will depend on the balance between new supply and occupier demand.
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India has airlifted 47.5 tonnes of humanitarian assistance and emergency supplies to Nepal as the neighbouring country continues rescue and relief operations following severe flash floods. The Indian Air Force deployed two transport aircraft over August 26 and 27 to move the consignments to Kathmandu. The first consignment, transported by a C-130J aircraft, weighed 10 tonnes and comprised relief materials including shelters, blankets, hygiene kits and medicines. A second IAF aircraft, a C-17, subsequently delivered 37.5 tonnes. The consignment consisted of 28.5 tonnes of humanitarian relief material, eight tonnes of medicines and one tonne of food packets, taking India's total assistance to 47.5 tonnes. The rapid deployment highlights the role of how military airlift supports emergency supply chain in delivering essential supplies when conventional road links are disrupted by natural disasters. The flooding has damaged roads, bridges and other infrastructure in affected parts of Nepal, creating additional challenges for moving relief material into impacted areas. The air shipments allowed essential supplies to reach Kathmandu while ground-based access remains constrained. India's External Affairs Minister S. Jaishankar said the relief material and medical supplies had reached Kathmandu and that Indian authorities remained in close contact with Nepalese officials over the response. Nepal has been coordinating the disaster response through its own security agencies, while foreign governments and international organisations have offered humanitarian and financial support. The relief operation comes after major flash flooding in Nepal's Bhote Koshi river system and surrounding areas caused extensive damage and significant loss of life. The scale of infrastructure disruption has made the movement of emergency supplies and restoration of transport connectivity key priorities for the ongoing response. Follow CARGOCONNECT for more such updates.
Indian textile and apparel exporters could lose market share in the United States after Washington imposed an additional 10% tariff on a broad range of Indian goods, according to the Confederation of Indian Textile Industry (CITI). The industry body has warned that the measure places Indian suppliers at a competitive disadvantage against several Asian manufacturing hubs that have secured preferential treatment under the new US trade framework. The tariff, introduced under Section 301 of the US Trade Act of 1974, comes on top of existing most-favoured-nation import duties and applies to a significant portion of India's manufactured exports, including textiles and apparel. Industry representatives say the additional levy is likely to increase sourcing costs for US buyers and reduce the price competitiveness of Indian products. CITI said the competitive imbalance has been intensified by the exclusion of India from a new tariff-rate quota programme that allows eligible textile and apparel shipments from countries such as Bangladesh, Cambodia, Indonesia and Malaysia to enter the US market without the additional Section 301 duty, provided they use US-origin cotton and fibre. The industry body believes this could encourage global retailers and brands to shift sourcing away from India. The United States remains India's largest overseas market for textile and apparel exports, with annual shipments valued at nearly US$11 billion. Any decline in demand from US buyers could have implications for manufacturing activity, employment and export earnings across India's textile supply chain, industry participants said. Trade analysts also expect the tariff's impact to extend beyond textiles. According to estimates by the Global Trade Research Initiative, around 70% of India's exports to the US—including garments, machinery, chemicals, plastics, leather products, gems and jewellery, and furniture—are expected to face the additional levy alongside existing import duties. The US tariff measures were introduced as part of a broader trade action targeting imports from multiple countries over concerns related to the enforcement of forced-labour import restrictions. While several product categories remain exempt, the new duties cover the majority of manufactured goods entering the US market. As of the latest reports, India's Ministry of Commerce and Industry had not issued an official response to the industry's concerns. Exporters are expected to closely monitor the implementation of the new tariff regime and assess its impact on order flows and sourcing decisions in the coming months. Follow CARGOCONNECT for more such updates.
FedEx is expanding its support for businesses across the Asia-Pacific region as exporters prepare for the United States' mandatory Consumer Product Safety Commission (CPSC) electronic filing requirements, aiming to help customers meet new compliance obligations and reduce customs-related disruptions. The logistics company said it is strengthening its trade compliance resources, digital customs capabilities and customer guidance as the new U.S. product safety filing framework approaches. The move is intended to help exporters navigate evolving import regulations while maintaining smoother cross-border shipments into the U.S. market. Under the new CPSC e-filing regime, importers will be required to submit product safety certificate data electronically through U.S. customs systems before goods enter the country. The requirement is expected to increase documentation standards for manufacturers, exporters and logistics providers handling regulated consumer products. To support customers, FedEx is offering trade expertise alongside digital tools designed to simplify customs documentation and improve shipment accuracy. These include AI-powered customs solutions and a Harmonized Tariff Schedule (HTS) code lookup feature that assists shippers in selecting the correct tariff classifications, reducing the risk of clearance delays caused by inaccurate declarations. The company has also expanded educational initiatives across Asia-Pacific, conducting customer webinars focused on customs compliance, regulatory updates and best practices for managing cross-border shipments. According to FedEx, the sessions have attracted thousands of participants from small and medium-sized enterprises as well as multinational companies, reflecting growing demand for guidance amid changing trade regulations. FedEx noted that businesses are increasingly seeking greater visibility into duties, taxes and customs procedures as trade policies continue to evolve. Survey feedback gathered during the webinar programme showed that regulatory changes remain one of the biggest challenges for companies engaged in international trade, while many businesses are also exploring opportunities beyond the U.S., particularly within Asia and Europe. The company said its expanded compliance support is aimed at helping customers improve documentation accuracy, minimise customs bottlenecks and adapt to changing international trade requirements as cross-border supply chains become more complex. Follow CARGOCONNECT for more such updates.
