Faridabad: A Strategic Asset in Delhi NCR’s Industrial and Logistics Expansion

In today’s era of quick commerce and rapid last-mile logistics, choosing the right warehousing location has become paramount. Businesses can benefit from picking vantage points that provide critical infrastructural support, facilitate speedy deliveries, and reduce transportation costs. Among the thriving hubs in the NCR industrial area, Faridabad stands out as a promising location for industrial parks and logistics warehouses. This city’s strategic positioning, robust connectivity, and growing economic significance make it a hidden gem in Delhi NCR’s industrial real estate in India.

Over the last few years, Delhi NCR has emerged as an ideal location for developers to build logistics parks due to its infrastructure, proximity to consumer bases, high population of skilled labour, connectivity, and availability of large swathes of land. Faridabad is one of the cities within the Delhi NCR region and is pivotal to the area’s appeal as a logistics hub. Not only it is a robust manufacturing centre, but it is also close to Delhi NCR and offers ample connectivity via roads, railways, air travel, and more. The city is transforming into a key logistical focal point with the help of favourable Government policies aimed at industrial expansion.

Here is why Faridabad could be what drives growth in the Delhi NCR region:

Geographically Advantageous

Faridabad’s proximity to bustling cities like Delhi, Noida, and Gurugram offers businesses seamless access to one of India’s largest consumer markets. Located near the Delhi-Mumbai Industrial Corridor (DMIC) and connected via the KGP-KMP Expressway, Faridabad ensures smooth logistics operations for warehousing companies. Its location near the KGP Expressway and the Yamuna Expressway further bolsters connectivity, enabling efficient goods movement to northern and central India. With easy access to warehouses in Gurugram, Noida industrial area, and beyond, Faridabad is well-positioned to become a leading hub for distribution centres in India.

Market Relevance

The Delhi NCR region is a hotbed for various industries to thrive. The region allows big and small businesses to access a wide array of customers and suppliers, reduce the cost of transportation, and expedite deliveries, giving businesses an edge over competition. While Gurugram is known for its thriving IT industry, manufacturing units, and pharmaceutical sector, Bilaspur has evolved into a warehousing hub and caters to the needs of third-party logistics players. Amongst a satellite of cities, Faridabad is a significant industrial centre and houses numerous manufacturing units in industries like automobiles, engineering, and consumer goods.

Faridabad’s industrial prominence lies in its diverse industries, including automobiles, engineering, and consumer goods. Supported by a skilled labour pool, the Faridabad industrial area attracts businesses looking to set up warehousing and storage solutions. As a result, the city has become an ecosystem that requires a steady influx of raw materials and distribution centres that help move finished products. Faridabad is located in Haryana, a state that contributed around 3.86% to India’s GDP in 2022-23 and experienced a 7.1% GSDP growth. With more than 80,000 skilled labourers in the state, businesses can set up warehouses in Faridabad and hire trained personnel while generating employment and furthering economic growth. This makes Faridabad an ideal location for businesses seeking affordable warehousing in India and modern manufacturing facilities.

Connectivity that Powers Growth

Faridabad boasts excellent connectivity through a robust network of national highways and expressways, ensuring seamless movement of goods across the country. It is strategically located near major highways, including the Delhi-Agra Highway (NH-2), Delhi-Chennai Highway (NH-44), and Delhi-Jaipur-Mumbai Highway (NH-48). Key expressways such as the KGP Expressway (Kundli-Ghaziabad-Palwal) and KMP Expressway (Kundli-Manesar-Palwal) form essential parts of the Eastern and Western Peripheral Expressways, easing congestion in Delhi NCR and linking industrial hubs like Faridabad for efficient logistics.

The Dedicated Freight Corridor (DFC) further reduces logistics costs and transit times, while infrastructure like the Yamuna Expressway and Delhi-Mumbai Industrial Corridor improves accessibility and goods distribution nationwide.

Faridabad is also well-placed for air travel, being close to Indira Gandhi International Airport and the upcoming Noida International Greenfield Airport, Jewar, which will together transform air freight services in the region.

Catalyst for Development

Recently, a slew of government initiatives has also bolstered the growth of Faridabad as a key location for warehousing in the region. DPIIT (Department for Promotion of Industry and Internal Trade) has stated that the State Government of Delhi is likely to approve CLPs (Model City Logistics Plans). The plans are aimed at addressing concerns like congestion and improving road logistics. These frameworks provide businesses with an enabling environment to establish logistics warehouses, distribution warehouses, and cold storage warehouses in the region. This move by the government aligns with the Ease of Doing Business agenda and will help make logistics ecosystems in the area more efficient and sustainable. These guidelines, in tandem with the National Logistics Policy, launched in 2022, will provide the governmental support needed to execute city-level plans, reduce costs, and improve urban freight transport^[1].

Challenges and Opportunities

At present, Faridabad’s logistics industry facing challenges like inadequate urban infrastructure, traffic congestion, and limited warehousing spaces. However, upcoming projects and policy implementation are likely to address these concerns. As Haryana plans on attracting investments to the tune of Rs 10,000 crore and creating 25,000 new jobs, last-mile connectivity issues plaguing the city will also be resolved. Meanwhile, ongoing upgrades are likely to incentivise investors and logistics companies to set up a base in Faridabad, enabling the city to establish itself as a global logistics and industrial hub. Businesses can now seize opportunities across key industrial and logistics hubs, including IMT Manesar, Faridabad and Okhla warehouses for rent, the industrial areas of Manesar, Faridabad, Bhiwadi, and Bawal, as well as warehouses in Noida and Gurugram. Additionally, Haryana's industrial zones and logistics service providers are well-positioned to meet the growing demand.

Lodha’s Commitment to Faridabad’s Growth

At Lodha, we understand the immense potential of Faridabad as a key industrial and logistics hub. Lodha Industrial and Logistics Parks (LILP) provide businesses with Grade A warehousing facilities and state-of-the-art logistics solutions designed for scalability and efficiency. Located in proximity to the Faridabad industrial area, our parks cater to businesses seeking warehouse management systems, urban warehousing, and in-city distribution centres. By combining strategic locations, modern infrastructure, and customer-centric solutions, we aim to redefine industrial warehousing in Delhi NCR.