Warehousing surge in India

financialexpress.com:

– By Avikshit Moral and Mahek Chheda

In recent years, India has witnessed a monumental surge in its warehousing industry, signalling a pivotal shift in the country’s economic landscape. The robust growth of e-commerce (expected to reach $350 billion by 2030), advancements in technology, government initiatives and evolving consumer preferences have collectively spurred a transformation in the logistics and warehousing sector. 

Warehousing in India operates within a legal framework designed to govern the storage, distribution and management of goods. India’s Warehousing (Development and Regulation) Act of 2007 (“WDR Act”) stands as a pivotal legislation governing the storage, regulation, and development of warehouses across the country. Some of the key provisions are:

Accreditation of Warehouses: It lays down the criteria and procedures for accrediting warehouses, ensuring adherence to specified standards of storage, infrastructure, and operations.

Negotiable Warehouse Receipts (NWRs): WDR Act facilitates the issuance of negotiable warehouse receipts (NWRs) by accredited warehouses which serve as negotiable instruments, enabling the transfer of ownership or pledge of stored goods, thereby facilitating trade and easing access to credit.

Regulatory Oversight: It empowers regulatory authorities to oversee compliance with standards, prevent malpractices, and ensure fair practices within the warehousing sector.

Governing the regulation and development of warehouses in Maharashtra is the Maharashtra Warehousing Act, 1960 (“MWA”), which is a state-specific legislation. Apart from licensing of warehouse, crucial features are:

Regulation of Warehouse Operations: MWA aims to regulate the conduct of warehouse operations to ensure