India's warehousing sector urged to diversify and embrace digital solutions for Growth

India's warehousing sector has been called to diversify its services and adopt digital solutions to drive growth and improve efficiency. T K Manoj Kumar, Chairman of the Warehousing Development and Regulatory Authority (WDRA), made this statement during the 2nd National Warehousing & Supply Chain Summit organized by the Federation of Indian Chambers of Commerce and Industry (FICCI). 

Kumar emphasized the importance of mandatory registration for commodity warehouses, which would enhance industry standards and boost investor confidence. He highlighted that compliance with standards set by the Bureau of Indian Standards (BIS) would ensure that stored goods minimize losses.

He also pointed out the critical role of pledge financing in the sector, stating it allows depositors to obtain funds against stored commodities, enabling them to sell when market conditions improve. "Pledge finance is an area which, in WDRA, we are trying our level best to promote," Kumar added.

In his address, Kumar urged warehouse operators to incorporate additional services such as sorting, grading, and packaging, which could enhance their returns. He noted the urgent need for modernization, particularly in rural areas and tier-two cities, saying, "We need to improve the warehousing stock of commodity warehouses in this country because the stock is slightly old."

Kumar also called for greater digitization in warehouse operations, revealing that while WDRA has fully digitized receipts for registered warehouses, many smaller facilities still rely on paper-based systems. 

Dr. Surendra Ahirwar, Joint Secretary at the Department for Promotion of Industry and Internal Trade (DPIIT), said that the PM Gati Shakti National Master Plan platform would soon be accessible to the private sector. "Very shortly, you would see that PM Gati Shakti National Master Plan platform can, or would be, opened to the private sector," he stated, offering opportunities to utilize geospatial data for better decision-making regarding warehouse locations and market connections.

Additionally, Dr. Ahirwar revealed the establishment of a new experiential center showcasing the PM Gati Shakti initiative at the India Trade Promotion Organisation (ITPO) complex in New Delhi, which is set to open to the public imminently. The center will demonstrate the impact of technology on infrastructure development.

Mr. Amit Kumar, Co-Chairman of the FICCI Committee on Logistics and Director of Pristine Logistics & Infraprojects noted that the PM Gati Shakti National Master Plan has revolutionized India’s infrastructure development. He highlighted the integration of 1,529 data layers from 44 ministries and 36 states and union territories, facilitating the evaluation of 213 projects worth Rs 15.4 lakh crores and identifying 156 critical infrastructure gaps.

Mr. Sanjay Bajpai, Executive Director of CONCOR, emphasized the rapid evolution of India's warehousing sector due to digitalization and infrastructure development. “I believe that the future of warehousing lies in embracing innovation and technology inclusion. Innovation will be the key to unlocking efficiencies across supply chains, making us more competitive on the global stage,” he said, stressing the importance of adopting cutting-edge solutions to create sustainable and resilient supply chains.