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A new Cushman & Wakefield report stresses the need for faster development of plug-and-play industrial parks, lower logistics costs, and stronger skilling efforts to boost India's manufacturing growth. Based on a survey of 94 industry leaders, the report notes that while 88% of manufacturers are expanding thanks to better infrastructure and policy support, challenges remain around logistics, warehousing, value addition, and skills. The firm recommends building integrated industrial zones, developing multimodal logistics parks, redefining MSME benchmarks, and strengthening digital systems for exports. Experts say these steps are key to helping MSMEs scale quickly, reduce costs, and compete globally in a shifting market.
Cushman & Wakefield has highlighted the urgent need for accelerated development of plug-and-play industrial parks, reduction in logistics costs, and targeted skilling initiatives to boost manufacturing activity in India. These insights were shared in a report titled Elevating India's Manufacturing Resilience: Charting the Path to Self-Reliance, which draws on a proprietary survey conducted with 94 senior decision-makers from across the manufacturing and logistics sectors in India, including both large enterprises and MSMEs. Advertisement
Gautam Saraf, Executive Managing Director for Mumbai and New Business at Cushman & Wakefield, stated that India's manufacturing sector is witnessing a structural transformation. He noted that the firm's findings reflected a strong convergence between infrastructure investments, clear policy direction, and industry ambitions. He added that 88% of surveyed manufacturers were expanding due to the confidence built through infrastructure developments, while more than 95% cited improved access to logistics via government-backed programmes.
Saraf, however, cautioned that to maintain this momentum, critical structural issues must be resolved-especially those concerning logistics inefficiencies, integrated facility availability, and productivity among MSMEs. He stressed that plug-and-play industrial parks, multimodal logistics networks, and robust land aggregation frameworks should be viewed not merely as support mechanisms but as essential levers to convert policy momentum into actual manufacturing readiness.
The report identified four primary challenges confronting India's manufacturing ecosystem: elevated logistics costs, inadequate warehousing capacity relative to global standards, minimal value addition, and a widening skill gap. To overcome these issues, the report recommends a five-pronged approach: accelerating the creation of plug-and-play industrial zones; redefining MSME benchmarks to enable scaling; expediting multimodal logistics park development; investing in focused skill development initiatives; and boosting MSME exports through unified digital systems and policy incentives.
Abhishek Bhutani, Managing Director of Logistics & Industrial Services India and Head of Gujarat at Cushman & Wakefield, remarked that the sector is at a critical inflection point. He observed that policy incentives and infrastructure advancements are aligning to drive manufacturing growth. According to him, plug-and-play parks are becoming increasingly vital, as they minimise time-to-market, reduce initial capital outlay, and lower operational risks, particularly benefiting MSMEs aiming for rapid expansion.
He also pointed out that as businesses expand into emerging geographies, their future success would depend significantly on their ability to access these turnkey ecosystems. These zones, he noted, should offer a blend of integrated logistics, skilled human capital, and multimodal connectivity.
The shift towards plug-and-play ecosystems, improved logistics infrastructure, and a renewed focus on workforce skilling could bridge existing operational and cost barriers. As MSMEs look to scale and industry players explore new territories, a robust framework combining policy clarity, physical infrastructure, and digital platforms will be vital in converting potential into performance.
Source - PTI
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