The Indian e-commerce industry is responding to the infrastructure challenges they’re facing in the country.

A new report by The Associated Chambers of Commerce and Industry of India and PwC predicts companies plan to invest up to $1 billion on infrastructure, logistics and warehousing during the next few years.

The investments will be used in building large fulfilment centres and warehouses, downstream parcel and sorting centres, equipping these nodes with state-of-the-art technology and modern warehousing practices promoting viability across the logistics chain.

Over the next three to four years, there will be an addition of 7.5 to 15 million sqft in the form of fulfillment centres indicating an additional six to 12 per cent of all the space available in the form of organised warehousing in India and 25 to 50 per cent incremental addition of consumption-driven warehousing space.

“The growth of the e-commerce industry has a huge potential in the country translating into beneficial effects for the manufacturing industry, infrastructure and jobs,” said Saurabh Srivastava, director, operations, PwC.

“The potential of the sector and the likely liberalisation in the form of FDI could be a vital factor in attracting significant investments resulting in better infrastructure and robust supply chains.”