Plug-and-play industrial parks to help manufacturing capability of India: Survey
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Slow land aggregation, delayed approvals, patchy utilities and weak links to highways and railheads are biggest roadblocks for manufacturers.According to a survey of top executives of manufacturers by Cushman & Wakefield, 97% of respondents acknowledge improved availability of Grade-A warehousing , but India still has only 0.2 sq. ft. of quality warehousing per urban resident, compared to 8.6 in China and 47.3 in the U.S.Plug-and-play (P&G) infrastructure has emerged as the solution.'According to our survey, 88% of manufacturers are scaling up due to infrastructure-led confidence, and over 95% report improved logistics access through government-backed programs. To sustain this momentum, India must address deep-rooted cost and capacity gaps—especially in logistics, integrated facilities, and MSME productivity,' said Gautam Saraf, executive managing director, mumbai and new business, Cushman & Wakefield.'Plug-and-play industrial parks, multimodal logistics networks, and improved land aggregation frameworks are not just enablers, they are essential levers for converting policy momentum into production ready outcomes,' Saraf said.The survey was conducted with 94 senior decision-makers across India's manufacturing and logistics sectors, including chief executives, plant heads, and supply chain leaders, capturing a mix of perspectives from large enterprises and MSMEs. These respondents represent a diverse group, with 56% of companies employing over 500 people.The survey reveals high optimism regarding the impact of government-led infrastructure initiatives such as Bharatmala, Sagarmala, Dedicated Freight Corridors, and the National Industrial Corridor Development. As many as 86% of respondents said these initiatives have positively influenced their business operations, while 95% reported improved access to logistics and transport infrastructure as a result.'India's manufacturing sector is at an inflection point—poised for accelerated growth driven by policy support and infrastructure improvements. A significant takeaway from our research is the rising importance of plug-and-play industrial parks . These pre-approved, infrastructure-ready zones are helping reduce time-to-market, lower upfront capital expenditure, and mitigate operational risks—especially for MSMEs looking to scale,' said Abhishek Bhutani, managing director, logistics & industrial, Cushman & Wakefield.For 88% of respondents, the government's infrastructure push has directly influenced capital investment decisions, signaling increased confidence to scale operations. For large enterprises, the impact is even sharper—94% say these upgrades have been pivotal in shaping their expansion plans.The report points to rising momentum in high-impact sectors such as automotive, engineering goods, electronics and chemicals. Simultaneously, third-party logistics (3PL) and FMCG operators are driving demand for Grade-A warehousing, buoyed by rapid consumption growth and the scaling of distribution networks.97% of respondents acknowledged a marked increase in quality warehousing supply, and 70% confirmed their organization's readiness to expand into Tier II and III cities—enabled by improved infrastructure, multimodal access, and cost arbitrage benefits. Moreover, 81% indicated that they intend to expand their manufacturing or warehousing footprint within the next two to three years.Despite these advances the report identifies four core challenges - high logistic cost, warehousing capacity lacking global benchmarks, skill gap and low value addition.India converts only 17% of manufacturing output into value-added, compared to 25% in China and 36% in South Korea —which means that most Indian factories are still piecing together imported components rather than generating high-value inputs at home.Almost 94% of respondents stressed the importance of sustained infrastructure creation as essential to improving business outcomes.
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