Top Tier 2 & 3 Cities in India Rapidly Rising as Major Warehousing Hubs
Explore how Tier 2 and Tier 3 cities in India are becoming key logistics and warehousing hubs, driven by e-commerce, manufacturing, and strategic infrastructure.
LogisticsWarehousingTier 2 CitiesTier 3 CitiesEcommerceReal EstateNov 15, 2025
Tier 2 & 3 Cities Emerging as Warehousing and Logistics Hotspots
1. Lucknow
Lucknow is a promising North Indian logistics market due to its strategic location along NH 27, a high-speed link between two major cities. Major players operating in existing Grade B warehouses include Amazon, Bharti Airtel, Delhivery, and Gati KWE. Land is available for Rs. 70 – 80 lakh per acre, and rental rates are around Rs. 10 – 15 per sq. ft. per month. There is excellent connectivity to Lucknow and Kanpur airports, which are about 35 – 45 minutes away. Plans are underway to develop A-grade warehouses by increasing investment.
2. Jaipur
The Jaipur warehouse and logistics market is growing, driven by the state’s Rajasthan Logistics Policy 2025. Jaipur is a hub for industries such as textile manufacturing and engineering, which fuels the growth of warehouse and logistics services. There are private, public, and automated warehouses, as well as specialized facilities like cold storage and bonded warehouses, located in major industrial areas such as Vishwakarma Industrial Area and Sitapura Industrial Area. Major logistics companies include Mahindra Logistics and Safexpress.
3. Chandigarh
There is a surge in e-commerce, real estate prices, and technology integration in Chandigarh. The city focuses on modern, flexible facilities, and its planned infrastructure and growing industrial base are making it a key hub for modern warehousing solutions. Major players include AR Logistics, Core Logistics Pvt. Ltd, Om Logistics, Shiprocket Fulfillment, and Mahindra Logistics. Major areas of warehousing include Manimajra, Zirakpur, and Mohali.
4. Nagpur
Nagpur’s strategic central location in India, currently hindered by MIHAN SEZ industrial expansion, has a diverse manufacturing base including textiles, steel, and auto, which fuels the need for logistics services. Major key players are WarelQ, Blue Dart Express, Gati Limited, VRL Logistics, and Safexpress. Key warehouse areas in Nagpur include Warda Road, near MIHAN, Manish Nagar, and Wadi.
5. Indore
Indore is an emerging logistics hub due to its infrastructure and cost-effectiveness, supported by the Madhya Pradesh Logistics Policy 2025. It has initiated Multi-Modal Logistics Parks. Key players in the Indore warehouse and logistics market include RCPL Logistics, Vivek Logistics, Speed Movers Logistics, TCI Express, Gati Limited, and Blue Dart Express. Key areas include Pithampur, Dewas, and Sanwar.
6. Ahmedabad
Ahmedabad’s logistics and warehousing sector shows strong growth with a surge in leasing warehouses in H1 2025. It benefits from commercial hubs, engineering, and textiles logistics services. Major players include TCI, Varuna Group, DHL, and FedEx. Key areas of warehousing are located in Sanand, Changodar, Bavia, and the Asiali – Kheda Cluster.
7. Coimbatore
Coimbatore is a growing IT sector driven by the city’s industrial base in textiles, engineering, and automobiles. It has large-scale modern warehouse facilities with high-capacity storage. Key players are VSMC Logistics Park and OM Logistics. It has good connectivity to Bangalore and Salem. Major areas are Palladam, Avinashi Road, Kovilpalayam, and Nesavalar Colony.
8. Kochi
Kochi’s warehouse and logistics market is growing due to major infrastructure projects like Adani’s new logistics park and increased e-commerce. Key national and international players include Blue Dart, DHL, and local operators like URBX Worldwide. Major areas of warehousing include Kakkanad, Aluva, and Palarivattom.
9. Visakhapatnam
Visakhapatnam is a strong port city with growing industrial activity and ongoing government-led reforms focused on modernization and sustainability. It is majorly focused on the export and import of iron ore, crude oil, etc. Major key players include Mahindra Logistics, Gati, Safexpress, and Balmer Lawrie. Major areas of warehouses are Parwada, Autonagar, and Visakhapatnam Port Trust.
Final Thoughts
The logistics and warehousing market in India is growing rapidly in metro cities as well as Tier 2 and Tier 3 cities in several parts of India, driven by major export and import activities in e-commerce and the textile industry. There is a significant investment opportunity in the logistics and warehousing market, as it provides good connectivity for several cities.
Frequently Asked Questions
What are the main factors driving the growth of the logistics and warehousing market in Tier 2 and Tier 3 cities?
The main factors include the growth of e-commerce, manufacturing, and consumption, along with strategic infrastructure and government policies.
Which Tier 2 and Tier 3 cities are emerging as major logistics hubs in India?
Cities like Lucknow, Jaipur, Chandigarh, Nagpur, Indore, Ahmedabad, Coimbatore, Kochi, and Visakhapatnam are emerging as major logistics hubs.
What are the key players in the warehousing and logistics market in these cities?
Key players include Amazon, Bharti Airtel, Delhivery, Mahindra Logistics, Safexpress, Blue Dart Express, Gati Limited, and VRL Logistics.
How is the government supporting the growth of logistics and warehousing in these cities?
The government is supporting growth through policies like the Rajasthan Logistics Policy 2025, Madhya Pradesh Logistics Policy 2025, and major infrastructure projects such as Adani’s new logistics park in Kochi.
What are the major areas for warehousing in these cities?
Major areas include Manimajra, Zirakpur, Mohali, Warda Road, Pithampur, Dewas, Sanand, Changodar, Palladam, Avinashi Road, and Parwada.
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