We recently released a new report, Make in India: A Manufacturing Initiative, that details the Indian government led initiative to grow the manufacturing sector in the country.

Our perspective of course is how this exciting program will also foster the growth of the corporate real estate profession in India.

With the anticipated increase in manufacturing investment, there is an expected uptick seen in the demand for related real estate. Not only will this be for warehouses and manufacturing space, but there will also be an increased demand for office space to house those being employed by the new manufacturing facilities. Similarly, there should be growth in retail space in order to showcase the goods being produced.

As the report notes, since the announcement of the “Make in India” and related initiatives, there has been an influx of companies signing Memorandums of Understanding (MoU) or starting operations in the country:

  • Huawei invested 170 million USD to build a R&D center in Bengaluru
  • Hyundai partnered with local company Hindustan Shipyard Limited to manufacture naval ships in India
  • Mercedes Benz doubled its output capacity by opening a second manufacturing facility in Chakan, near Pune city
  • Foxconn, which supplies to Apple, will be investing 5 billion USD into a semi-conductor manufacturing facility
  • Schneider Electric plans to invest 110 million USD over the next five years. The plans include skill development and making its India facilities part of its global supply chain by using it as an export hub.

In addition to companies boosting their investment, countries such as Japan and Germany have shown interest. For example, Japan plans to set up a 12 billion USD fund for projects related to Make in India. Similarly, several MoUs have been signed between India and Germany to fast-track investment by German companies and make it easier for them to conduct business in India.

These and other themes will be explored by corporate real estate leaders from across the region at the CoreNet Global India Conference later this month.

Download the full report.