What is the Production Linked Incentive (PLI) scheme impact on industrial real estate?

The PLI scheme, providing financial incentives to manufacturers based on incremental production volumes, has significantly stimulated demand for industrial real estate as domestic and foreign manufacturers scale up production capacity in India across multiple sectors.

Key Sectors and Real Estate Impact

• Electronics and semiconductor manufacturing driving large factory demand
• Pharmaceutical and medical device manufacturing requiring specialized facilities
• Automotive and EV components creating industrial park opportunities

Geographic Concentration

• Industrial corridors along Delhi-Mumbai and Chennai-Bengaluru routes
• Existing manufacturing hubs in Pune, Surat, and Ahmedabad expanding
• New industrial estates in states with proactive investment policies

Real Estate Investment Opportunities

• Built-to-suit manufacturing facilities for PLI-beneficiary companies
• Ancillary warehousing and logistics demand near production sites
• Worker housing and township development around new industrial clusters

The PLI scheme has been a significant demand driver for industrial real estate in India, creating multi-year investment opportunities as manufacturers establish and expand domestic production capacity across a wide range of strategic sectors.