India, ADB ink $350 mn deal to boost logistics sector reforms & efficiency

The Indian government and the Asian Development Bank (ADB) on Friday (December 20) signed a landmark $350 million policy-based loan under the second sub programme of the Strengthening Multimodal and Integrated Logistics Ecosystem (SMILE) programme. This agreement represents a pivotal step towards revolutionising India’s logistics sector.

A unified effort for sustainable logistics

This initiative, in collaboration with the Department of Economic Affairs (DEA) under the Ministry of Finance, the Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry, and ADB, seeks to position India as a global leader in efficient, resilient, and sustainable logistics systems.

SMILE Programme: Driving strategic reforms

The SMILE programme, a flagship policy-based initiative, adopts a comprehensive approach to logistics reforms. Spanning two sub programmes, it is designed to enhance the competitiveness of India’s manufacturing sector and strengthen the resilience of supply chains.

Key pillars of the programme

- Strengthening institutional frameworks: Developing capacities at national, state, and city levels for the seamless integration of multimodal logistics infrastructure.

- Standardising warehousing: Establishing uniform standards to streamline supply chains and attract private investment.

The reforms are anticipated to significantly reduce logistics costs, improve operational efficiency, and create substantial employment opportunities. Notably, the programme emphasises gender inclusion, fostering equitable growth across sectors and ensuring broad-based benefits.