$ 350 million ADB loan approved to enhance India logistics and exports

Asia Development Bank has approved a $350 million policy based loan to support India strengthen and modernize logistics sector.

As per a statement from the regional development bank, dated December 6, the loan will finance the second subprogram, supporting Indian government’s efforts to create a comprehensive policy, planning and institutional framework at the state and city levels.

The development of India’s logistics sector is pivotal in enhancing the competitiveness of its manufacturing sector.

Through strategic policy reforms, infrastructural improvements and digital integration, the government’s ongoing reforms are set to transform the logistics landscape, ADB said.

This transformation is expected to not reduce costs and improve efficiency, but also create employment opportunities and promote gender inclusion-driving sustainable economic growth.

The Government of India has launched several strategic policies to address logistics sector constraints, including the Prime Minister Gati Shakti-National Master Plan (PMGS-NMP) and the National Logistics Policy (NLP). These initiatives aim to improve infrastructure, streamline processes, and promote digitization.