The central government and the Asian Development Bank (ADB) have signed a USD 350 million policy-based loan under the second subprogramme of the Strengthening Multimodal and Integrated Logistics Ecosystem (SMILE) programme.
The Ministry of Commerce & Industry, in an official statement, said that this loan aims to expand India’s manufacturing sector and enhance the resilience of its supply chains.
The loan agreement was signed by the Department of Economic Affairs (DEA) of the Ministry of Finance, the Department for Promotion of Industry and Internal Trade (DPIIT) of the Ministry of Commerce and Industry, and the ADB.
The SMILE programme is a policy-based loan that supports the government in undertaking wide-ranging reforms in India’s logistics sector. The program consists of two subprograms designed to boost India’s manufacturing sector and improve the resilience of its supply chains.
It establishes and operationalises a comprehensive policy framework to enhance logistics efficiency by strengthening the institutional foundations for multimodal logistics infrastructure development at national, state, and city levels.
The ministry also noted that the initiative will standardise warehousing and other logistics assets, strengthening supply chains and encouraging greater private sector investment. This will improve efficiencies in external trade logistics and promote the adoption of smart systems for efficient and low-emission logistics.
The development of India’s logistics sector is crucial for enhancing the competitiveness of its manufacturing sector. Through strategic policy reforms, infrastructure development, and digital integration, these ongoing reforms are set to transform the logistics landscape.
This transformation is expected to reduce costs, improve efficiency, create substantial employment opportunities, and promote gender inclusion, driving sustainable economic growth.
Follow us
