The Central Government and the Asian Development Bank have agreed upon a policy-based loan, which is in the amount of $350 million. Such an initiative will be available under the second subprogram of the SMILE. It intends to boost Indian manufacturing by building up their supply chains.
An agreement that the Department of Economic Affairs, Ministry of Finance, the Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry, and ADB have jointly signed will represent the commitment of the government to transforming the logistics landscape.
The SMILE program’s programmatic approach consists of two subprograms that focus on broad-based policy reforms to enhance logistics efficiency. The initiative establishes a comprehensive framework for developing multimodal logistics infrastructure at national, state, and city levels. It also aims to standardise warehousing and logistics assets, incentivise private sector participation, and adopt smart systems for low-emission, efficient operations.
The Ministry of Commerce & Industry pointed out that these measures are necessary to improve the competitiveness of the manufacturing sector in India. The program is likely to create employment, ensure gender inclusion, and bring sustainable economic growth through cost reductions in logistics and improving efficiency in external trade.
This reflects the mutual commitment of both the Indian Government and ADB to utilising logistics as a foundation for economic development. By driving digital integration, infrastructure advancement, and strategic reforms, this partnership promises to transform the logistics ecosystem in India-boosting growth, innovation, and global competitiveness.
Source: ANI
