Automation is at the heart of the Indian warehousing revolution, delivering smarter, faster, and more resilient logistics operations.
On August 1, 2025
Indian warehousing is entering a new era, with automation transforming logistics operations at unprecedented speed. According to recent projections, nearly 80% of Indian warehouses will integrate some level of automation by 2030, marking a major shift towards modern, efficient, and resilient supply chains.
FM Logistic India’s latest white paper, Elevating Indian Warehousing: The Performance Power of Automation, provides an in-depth look at this evolution.
Indian warehousing is undergoing a rapid transformation, driven by the need for increased efficiency and the demands of growing e-commerce. The market for warehouse automation in India is currently valued at USD 0.43 billion, and is projected to reach USD 1.42 billion by 2030, with a compound annual growth rate (CAGR) of 26.96% according to IBEF (2025) and Mordor Intelligence (2024).
E-commerce giants such as Flipkart and Amazon are significant contributors to this demand, as India now holds the third-largest online shopper base globally, expected to reach 350 million by 2026. This growth places automation at the heart of Indian warehousing, providing solutions to enhance efficiency, accuracy, and customer satisfaction.
Automation in Indian warehousing is being fuelled by several key drivers. The global trend shows 94% of companies prioritise improved efficiency, accuracy, and enhanced customer service as the primary reasons for adopting warehouse automation.
In India, automation technologies such as automated storage and retrieval systems (AS/RS), robotic picking, and autonomous guided vehicles (AGVs) are gaining traction. These solutions improve order fulfilment accuracy, reduce operational bottlenecks, and enhance customer satisfaction.
Furthermore, Indian organisations are embracing cloud-based automation, edge solutions, IoT, and sensor-based technologies like RFID and machine vision to drive operational performance.
Labour market pressures, including high attrition rates, long training times, and rising wages in metropolitan areas, are also accelerating the adoption of automation across Indian warehousing.
Despite its benefits, automation in the Indian market faces several challenges. Financial concerns, especially low or delayed return on investment (ROI), remain significant obstacles.
According to the global research included in the white paper, 80% of companies cite low or delayed ROI and resistance to adoption as major barriers to warehouse automation.
In addition, high investment costs are a hurdle, particularly in regions where blue-collar wages are lower, making it harder to justify automation expenditures.
However, the Indian market is adapting. 93% of Indian firms planned to increase automation budgets in 2023, with 66% boosting funding by 25% or more, reflecting a strong commitment to modernising Indian warehousing.
The financial burden of automation is evolving, with third-party logistics (3PL) providers playing a crucial role. Many Indian companies treat automation as capital expenditure, amortising costs over time. However, 3PLs often bundle automation investments into service contracts, distributing costs across the project lifecycle.
This approach makes automation more accessible, accelerating its adoption within Indian warehousing.
Despite the challenges, businesses are finding ways to manage investments and ROI expectations. Around 80% of organisations expect a 2-to-4-year breakeven period for automation projects, with typical ROI ranging between 1% and 9%.
The future of Indian warehousing is not about choosing between humans and machines, but integrating both. Automation enhances speed, accuracy, and safety by handling repetitive, high-volume tasks such as sorting and material handling.
Meanwhile, human expertise remains essential for quality control, managing exceptions, and solving complex problems. This collaborative model enables Indian warehousing to build agile, resilient supply chains.
FM Logistic India’s white paper offers comprehensive insights into the automation landscape, from market projections to financial strategies and human-machine collaboration.
Indian warehousing is transforming and automation is at the core of this change. Stay ahead by understanding how your operations can benefit.
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