Homegrown Companies Outpace MNCs in Factory Expansion
What Happened
Domestic manufacturers are now driving India’s industrial real estate boom, with factory-space leasing by Indian companies growing at a 34% CAGR between 2020 and 2025, compared to 23% for multinational firms, according to a Savills India report. Overall manufacturing leasing jumped from 5.8 million sq ft in 2020 to 21.3 million sq ft in 2025. The biggest demand came from automotive and auto components (31%), followed by electronics (12%) and renewable energy (10%).
Key Takeaways
India’s manufacturing growth is increasingly being led by domestic companies expanding capacity and moving into larger, higher-quality facilities. The trend reflects the success of initiatives such as Make in India and the country’s emergence as a stronger manufacturing hub, with factory leasing projected to reach 30-32 million sq ft annually by 2030.