Top 5 FTWZ locations in India: Importance and Advantage

With India’s rapidly expanding participation in international supply chains, businesses are changing how they import goods into India, store them, and distribute them throughout the world. With imports projected to be $697.75 Billion (USD) in 2024 with a trade deficit of $263.31 billion (USD), companies must now find ways to fulfil the demands of their clients at the lowest possible landed cost, quicker delivery time, and fewer inefficiencies in their operations. Free Trade Warehousing Zones (FTWZs) have become a major part of meeting these goals for companies—FTWZ locations offer businesses to store goods that are exempt from duty, access additional services such as customs clearance, and move products across international borders seamlessly.

Over the past ten years, India has built out many FTWZ locations around the country with regard to serving specific trade routes, industry clusters, and areas for distributing goods. In this blog, we look at the top FTWZ locations in India, what makes them strategically important, and how businesses can leverage them for trade efficiency. We’ll also explore why certain regions are better suited for import consolidation, re-export, or domestic redistribution—and how choosing the right FTWZ partner can influence long-term competitiveness.

Understanding the FTWZ Landscape in India

Free Trade Warehousing Zones refer to a specially designated area where a company can import products, store, process and distribute them without the imposition of a customs duty for up to three years. FTWZs represent a growing opportunity for global businesses, particularly those engaged in high value, multi-SKU and cross-border trade, by merging bonded warehousing capabilities with the option of flexible value-added services. Modern FTWZs serve as a more than just a physical space for the storage of goods. They have evolved to be a strategic location to provide a centralised distribution centre for companies to assemble all of their global shipments and defer payment of customs duties, as well as to allow businesses to change the configuration of their products according to different market requirements without creating customs liabilities for the company. FTWZs are also supported by government policy and infrastructure initiatives that are designed to increase import volume and make them vital to managing inventory and works capital.

Top 5 FTWZ Locations in India

India’s top 5 FTWZ locations can be broadly categorized into port-led hubs and consumption-driven hubs. Both play different roles in supply chain strategy.

• FTWZ Mumbai, Maharashtra- FTWZ in Mumbai is considered one of the most widespread, busy among the FTWZ locations available in India. This is due to its location near two major Ports (JNPT & Mumbai Port). FTWZ Mumbai’s location on this large Port gives it a well-established infrastructure, customs management, and mature Logistics ecosystem while also having multiple developed industrial clusters ranging from automotive to pharmaceuticals to electronics. As such, many businesses use FTWZ Mumbai for high volume import, quick delivery and an efficient means of delivering goods to both Global and western Indian markets. It’s also located close enough to many manufacturing hubs and consumption hubs that many businesses can utilize the efficiencies of operations from both points of view.
• FTWZ Chennai, Tamil Nadu- The FTWZ Chennai is strategically located in South India’s manufacturing “Powerhouse” and has access to the following three major ports—Chennai, Ennore, and Kattupalli. The region has consistently attracted a number of Multinational Corporations (MNCs) due to the presence of an established automotive, electronics and engineering manufacturing base as well as a dependable export infrastructure. The FTWZ Chennai allows companies to reduce costs associated with inbound supply chain operations and support OEMs through duty deferral, vendor consolidations and just-in-time deliveries. FTWZ Chennai’s competitively priced logistical expenses combined with its geographic localisation provide excellent advantages to manufacturers that require reliable supply chains, high volume fast processing and regional shipping capabilities.
• FTWZ Mundra, Gujarat- FTWZ Mundra is located next to Mundra Port, which is one of India’s largest and most efficient private ports that handle large volumes of containers. Over the years, FTWZ Mundra has developed into a critical logistics centre for industrial products such as machinery, chemicals and bulk materials due to its reliability in providing infrastructure and cost efficiency. Some of the advantages that companies operating from FTWZ Mundra have include lower logistics costs, faster logistics movement, and streamlined customs processes. FTWZ Mundra is a preferred location for imported goods and operations by companies where scale of operations, reduced dwell time and quick, efficient global re-export connections to Middle Eastern, African, and European markets can be achieved.
• FTWZ Noida, Delhi NCR- FTWZ Noida is rapidly becoming one of the most successful FTWZ’s in India due to its location near the largest consumer market in the country as well as a developed distribution chain through North India. FTWZ Noida’s connectivity with ICD Dadri, major expressways, industrial corridors and international airports has allowed companies to perform their warehousing and distribution to domestic and global markets much more efficiently from FTWZ Noida. FTWZ Noida has had significant growth in industries that necessitate high SKU complexity, rapid order fulfilment cycles and multi-channel sales structures. Many companies are using FTWZ Noida as their central bonded distribution centre for their imported products, thereby allowing companies to reduce their working capital strain on inventory and have quick access to market.
• FTWZ Mumbai, Maharashtra- The FTWZ Mumbai is one of the most established and significant FTWZ sites in India due to its location near JNPT (the largest container port in India) and the extensive industry and business infrastructure of the Mumbai metropolitan area. The FTWZ has all of the necessary elements to facilitate rapid international trade, including excellent port connectivity, strong freight transport networks, and a sound customs and compliance regime for high-volume trade. Many businesses utilizing the benefits of FTWZ Mumbai use its resources for quick product clearance, temperature-controlled warehousing (high-value products) and for easily moving their products to Western India and beyond. The existence of a wider variety of industries, including automotive, pharmaceutical, electronics and industrial machinery, has made it an even more critical centre for consolidation, re-exporting, and value-added activity for imported goods. FTWZ Mumbai remains one of India’s most resilient and skilled trade infrastructure locations for business who require fast, scalable and predictable logistics capabilities.

Why FTWZ Locations Matter for Modern Businesses

FTWZs also provide added operational advantages by supporting the business’s goals of longer‐term customer needs.

• Re-export with minimal friction: FTWZ is designed to allow companies to move goods through the FTWZ back to their home country without incurring a duty, providing the companies with lower costs and a simplified way of conducting cross-border trade.
• Reduced landed costs: FTWZ allows for the consolidation of goods, reducing duties, and lower handling costs, which all translate to lower landed costs.
• Improved working capital cycles: since duties are deferred and inventory can be managed. Thus released funds for working capital can be used elsewhere.
• Pan-India redistribution from a single hub: consolidating goods and shipping to various regions reduces the overall logistics cost and improves operational efficiency.

Why OSV FTWZ Stands Out Among Leading FTWZ Locations

While multiple FTWZ locations contribute to India’s trade competitiveness, OSV FTWZ offers distinct advantages because of its location, infrastructure, and service capabilities.

1. Strategic Connectivity: OSV FTWZ’s proximity to primary regional markets, industrial hubs, and distribution networks makes it a great location for consolidating imports, redistributing domestic products, and supplying cross-border markets. Additionally, with its networks to the ports, airports, inland container depots, and expressways, businesses can transport their inventory quickly and at a lower cost.
2. Advanced Infrastructure & Facilities: At OSV FTWZ, there are modern temperature-controlled warehouses that allow for flexible and scalable (flexible and scalable) temperature-controlled warehousing with the newest available technology, superior quality in handling materials, and dependable operating procedures. The facilities also give companies the ability to use the same temperature-controlled environment for the processes associated with kitting, labeling, testing, repacking, and performing due diligence on their products; therefore, companies will improve the speed and accuracy of fulfilling their customers’ orders.
3. Customs & Compliance Efficiency: OSV FTWZ is focused on increasing customers’ operational efficiency and cost effectiveness through improved customs and compliance practices. It accomplishes these objectives through the use of electronic documentation, a transparent and efficient electronic workflow process, and a reduction in the time needed to receive governmental approval. The operational efficiency gained by OSV FTWZ will also improve operational effectiveness by lowering administrative costs and decreasing the risk associated with the movement of goods.
4. Multi-Sector Capability: The infrastructure and value-added services at OSV FTWZ allow it to support a wide range of diverse product categories (i.e., electronics, lifestyle, industrial equipment, pharmaceuticals, consumer products, and more recently, electric vehicle components). In addition, OSV FTWZ provides customers with the ability to fulfill orders through both business-to-business and omnichannel distribution methods.
5. National FTWZ Network Coverage: The OSV FTWZ Network’s ability to support growth and expansion is strengthened by providing access to Bonded warehousing & Logistics Infrastructure within all key FTWZ hubs, including Chennai, Mumbai, Mundra, Noida & Bengaluru, allowing Businesses to operate through a national network of compliant Strategic Hubs.
6. Value Proposition For A Business: The combinations of Duty Deferment, Optimised Handling, Flexible Operations, and Superior Service Capabilities from OSV FTWZ enables clients/minor/micro/large corporates to lower their total Cost of Transportation & Landed Cost, Improve Working Capital Cycle Times, and Reduce Time To Market. In addition to Being a Warehouse, OSV FTWZ Provides a Trade Facilitation Partner For Companies Considering Growing Within India and Globally. 

Conclusion 

India’s FTWZ locations have become central to how companies optimize trade, reduce supply chain risk, and improve cost efficiency. As networks mature and demand for faster, flexible cross-border movement grows, selecting the right FTWZ partner will determine how effectively businesses can scale. The right ecosystem not only reduces landed costs but strengthens competitiveness in a global market.