New Delhi: Government push to infrastructure has influenced capital investment decisions of 88 percent of respondent manufacturers, as per the IANS report. The government is pushing infrastructure and bringing down its logistics-to-GDP cost through various schemes such as Bharatmala, Sagarmala, Dedicated Freight Corridors, and the National Industrial Corridor Development. As per the Cushman and Wakefield report “Elevating India’s Manufacturing Resilience: Charting the Path to Self-Reliance,” the government push to infrastructure is forcing the manufacturing entities to scale up their capital expenditure in the hope of good logistics and infrastructure services.
Schemes such as PLI (production-linked incentives) further builds the positive impact on the overall production capabilities. National Logistics Policy (NLP) and National Industrial Corridor Development (NICD) are beneficial for MSMEs (micro, small, and medium enterprises) because they are providing accessibility and industrial park connectivity to these said entities, as per the report.
“India’s manufacturing sector is undergoing a structural shift. Our findings indicate a strong alignment between infrastructure investment, policy clarity, and industry intent,” said Gautam Saraf, Executive Managing Director, Mumbai & New Business at Cushman & Wakefield, PTI quoted.
However, the report also flagged current recurring challenges that are plaguing the infrastructure sector. Firstly, high logistics costs are followed by shortfalls in warehouse capacity, low value additions, and major skill set gaps.
Abhishek Bhutani, Managing Director, Logistics & Industrial Services India and Head – Gujarat at Cushman & Wakefield, stated that infrastructure-ready, pre-approved zones are playing a key role in cutting down time-to-market, reducing initial capital expenditure, and minimizing operational risks—particularly for MSMEs aiming to grow.
He further noted, as reported by PTI, that the success of companies expanding into new regions will hinge on access to integrated ecosystems that offer skilled labor and robust multimodal connectivity.