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 leading sourcing geographies and more.
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 increasingly spreading across both Tier-I and emerging Tier-II & III Cities.
Manufacturing activity is expanding across the country but remains concentrated in key hubs, led by Pune (26.7 mn sq. ft.), followed by Chennai (9.4 mn sq. ft.), and Bengaluru, while NCR and emerging markets like Hosur and Ahmedabad are steadily gaining traction.
The country’s manufacturing space demand is led by traditional industrial sectors, with Auto & Auto Components (29%) and Electrical & Electronics (18%) accounting for nearly half of the total leasing recorded between 2020 and 2025. At the same time, sectors such as machinery & equipment (9%), renewable energy sector (8%), and metal products are steadily gaining traction, reflecting the broadening of India’s manufacturing base.
Amid ongoing diversification and expansion of manufacturing activity, average space leased increased from 71,000 sq. ft in 2022 to 94,000 sq. ft in 2025, reflecting a sustained upward trend, where occupiers are consolidating operations into large-format, Grade-A industrial spaces.
“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,” said Srinivas N, Managing Director – Industrial & Logistics, Savills India.
European occupiers (44%) dominated manufacturing space leasing during 2020–2025, while APAC (31%) followed with strong investments across key sectors. Demand from the Americas (24%) and the Middle East (1%) remained moderate but continued to grow steadily, reinforcing India’s position as a resilient manufacturing hub.
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 increasingly spreading across both Tier-I and emerging Tier-II & III Cities.
Demand is expected to shift further towards larger, institutional-grade facilities capable of supporting automation, scalability, and sustainability requirements. High-growth sectors such as semiconductors, EVs, electronics, renewable energy, batteries & energy storage, and aerospace & defence segments are likely to play pivotal in driving the manufacturing space demand.