New Delhi: The Government of India and the Asian Development Bank (ADB) today signed a $350 million policy-based loan under the second subprogramme of the ‘Strengthening Multimodal and Integrated Logistics Ecosystem’ (SMILE) programme.
The signatories to the loan agreement were the Department of Economic Affairs (DEA), the Ministry of Finance; the Department for Promotion of Industry and Internal Trade (DPIIT), the Ministry of Commerce and Industry; and the ADB.
SMILE is a programmatic policy-based loan (PBL) to support the government in undertaking wide-ranging reforms in the logistics sector in India. The programmatic approach comprises two subprogrammes, which aim to expand India’s manufacturing sector and improve the resilience of its supply chains.
The programme establishes and operationalizes a comprehensive policy framework to enhance logistics efficiency through (i) strengthening the institutional bases for multimodal logistics infrastructure development at the national, state, and city levels; (ii) standardizing warehousing and other logistics assets to strengthen supply chains and incentivize greater private sector investment; (iii) improving efficiencies in external trade logistics; and (iv) adopting smart systems for efficient and low emission logistics.
The development of India’s logistics sector is vital to enhancing the competitiveness of its manufacturing sector, the Ministry of Commerce and Industry stated. Through strategic policy reforms, infrastructure development, and digital integration, ongoing reforms are poised to transform the logistics landscape. This transformation is expected to reduce costs, improve efficiency, generate substantial employment opportunities, and promote gender inclusion—driving sustainable economic growth.
The collaboration between the Government of India and ADB reflects a shared commitment to fostering growth and innovation in the logistics sector, supporting India’s broader economic development goals, the Ministry added.
– global bihari bureau
