Gurugram, September 9, 2026: Manufacturing is a cornerstone of India’s ‘Viksit Bharat’ vision and economic growth. In this context, Savills India’s latest report, “Beyond Make in India: The Rise of Made by India,” analyses manufacturing space leasing trends (2020–2025) across Tier-I, II, and III cities, highlighting demand patterns, key sectors, deal sizes, preferences, and sourcing geographies.
India’s manufacturing space demand is set for steady growth through 2030, driven by capacity expansion, localisation, and high-value sectors such as electronics, semiconductors, renewables, and auto. Leasing is projected to rise to 30–32 mn sq. ft. by 2030 with a CAGR of 7–9% between 2025–2030, with growth spreading across both Tier-I and emerging Tier-II & III cities.
Key Findings
- CAGR Growth: Manufacturing space leasing expanded at 30% CAGR (2020–2025).
- City Leaders: Pune (26.7 mn sq. ft.), Chennai (9.4 mn sq. ft.), and Bengaluru lead activity; NCR, Hosur, and Ahmedabad are emerging hubs.
- Sector Demand:
- Auto & Auto Components: 18.6 mn sq. ft. (29%)
- Electrical & Electronics: 11.5 mn sq. ft. (18%)
- Machinery & Equipment: 5.4 mn sq. ft. (9%)
- Renewable Energy: 5.1 mn sq. ft. (8%)
- Global Leasing Sources:
- Europe: 44%
- APAC: 31%
- Americas: 24%
- Middle East: 1%
- Deal Sizes: Average space leased rose from 71,000 sq. ft. (2022) to 94,000 sq. ft. (2025).
- Preferences: Larger, Grade-A compliant industrial spaces emphasising automation, sustainability, and operational efficiency.
Srinivas N, Managing Director – Industrial & Logistics, Savills India: “Government initiatives such as ‘Make in India’, the PLI scheme and ‘Atmanirbhar Bharat’, along with global supply chain shifts, are accelerating India’s transition from ‘Make in India’ to ‘Made by India’, positioning it as a competitive manufacturing and export hub. Over time, the sector is expected to move beyond its traditional cost advantage towards a capability-led ecosystem anchored in innovation, supply chain resilience, and export competitiveness.”
Future Outlook
Demand is expected to shift further towards larger, institutional-grade facilities capable of supporting automation, scalability, and sustainability. High-growth sectors such as semiconductors, EVs, electronics, renewable energy, batteries & energy storage, and aerospace & defence are likely to play pivotal roles in driving manufacturing space demand.
About Savills India
Savills is a global property advisory firm headquartered in London with a network of 40,000+ professionals across 700+ offices worldwide.
Savills India, a group company of Savills Plc, operates full-service offices in Bengaluru, Mumbai, Delhi NCR, Chennai, Pune, Hyderabad, Ahmedabad, and Kolkata.
Services include leasing, advisory & transactions, project management, capital markets, valuations, hospitality services, and research & consulting across asset classes such as commercial, industrial, warehouses & logistics, data centres, and residential.
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