350 million loans signed between Government of India and ADB
The Government of India and the Asian Development Bank (ADB) today signed a policy-based loan of $350 million under the second subprogram of the Multimodal and Integrated Logistics Ecosystem (SMILE) programme.
The signatories to the loan agreement are the Department of Economic Affairs (DEA), Ministry of Finance; Department of Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry; and ADB.
The SMILE programme is a programmed policy-based loan (PBL) to help the government bring about comprehensive reforms in the logistics sector in India. The programmatic approach consists of two subprograms, which aim to expand India’s manufacturing sector and improve the stability of its supply chain.
The programme establishes and implements a comprehensive policy framework
The programme (i) establishes and implements a comprehensive policy framework for enhancing logistics efficiency through strengthening institutional infrastructure for development of multimodal logistics infrastructure at the national, state and city levels; (ii) standardization of warehouses and other logistics assets to strengthen the supply chain and encourage private sector investment; (iii) capacity building in external trade logistics; and (4) adoption of smart systems for efficient and low emission logistics.
The development of India’s logistics sector is critical to increasing the competitiveness of its manufacturing sector. Through strategic policy reforms, infrastructure development and digital integration, the ongoing reforms are poised to transform the logistics sector. These changes are expected to reduce costs, improve efficiency, create substantial employment opportunities and promote gender inclusion — promoting sustainable economic growth.
Cooperation between the two. read more
