New Delhi, July 30
India's manufacturing sector hit a 14-month high amid logistics rents across Asia-Pacific held nearly flat in the first half of 2025 (H1 2025), dropping 0.4 per cent year-on-year (YoY) despite global trade tensions and heightened caution among occupiers, a report said on Wednesday.
"India's manufacturing sector hit a 14-month high with its S&P Purchasing Managers' Index reaching 58.4 in June, the strongest performance across the region, driven by rising international sales, higher output, and record-breaking employment growth," Knight Frank said in its report.
Despite a rise in vacancies across India's three largest logistics markets, rents climbed at a faster 3.4 per cent in H1 2025, up from 2.1 per cent six months ago.
“India’s logistics sector continues to display strength and stability, driven by the manufacturing rebound, policy support, and sustained occupier interest," said Shishir Baijal, Chairman and Managing Director, Knight Frank India.
As global players reconfigure their supply chains, India offers a strategic alternative with a cost advantage and growing infrastructure base, Baijal added.