News Brief
Asian Development Bank Provides $350 Million Loan To Strengthen India’s Logistics And Boost Manufacturing Resilience
Logo of the Asian Development Bank
The Government of India and the Asian Development Bank (ADB) have signed a $350 million policy-based loan under the second subprogram of the Strengthening Multimodal and Integrated Logistics Ecosystem (SMILE) program. This agreement aims to bolster India’s manufacturing sector while enhancing the resilience of its supply chains.
The loan agreement was formalised by the Department of Economic Affairs (DEA), Ministry of Finance; the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry; and the ADB.
This initiative is part of the broader SMILE program, which aims to support wide-ranging reforms in India’s logistics sector. The program is structured into two subprograms that focus on expanding manufacturing capabilities and strengthening supply chain resilience.
A key feature of the SMILE program is its focus on establishing and operationalizing a comprehensive policy framework to improve logistics efficiency. This will be achieved by strengthening the institutional bases for multimodal logistics infrastructure at the national, state, and city levels.
The development of India’s logistics sector is crucial to enhancing the competitiveness of its manufacturing industry. Through strategic reforms, infrastructure enhancements, and digital integration, the ongoing transformation is expected to reduce logistics costs, increase efficiency, generate jobs, and promote gender inclusion, all while fostering sustainable economic growth.
This collaboration between the Government of India and ADB reflects a shared commitment to driving innovation and growth within the logistics sector, which aligns with India’s broader economic development objectives.
