India signs USD 350 million loan agreement with ADB to expand manufacturing sector

New Delhi [India], December 21 (ANI): The central government and the Asian Development Bank (ADB) signed a USD 350 million policy-based loan under the second subprogram of Strengthening Multimodal and Integrated Logistics Ecosystem (SMILE) program.
The Ministry of Commerce & Industry in an official statement stated that this policy-based loan aims to expand India's manufacturing sector and improve the resilience of its supply chains
The signatories to the loan agreement were Department of Economic Affairs (DEA), Ministry of Finance; Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry; and the ADB.
The SMILE program 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 subprograms, which aim to expand India's manufacturing sector and improve the resilience of its supply chains.
The program establishes and operationalizes a comprehensive policy framework to enhance logistics efficiency through strengthening the institutional bases for multimodal logistics infrastructure development at the national, state, and city levels.
The ministry also noted that it will also help in standardizing warehousing and other logistics assets to strengthen supply chains and incentivize greater private sector investment, improving efficiencies in external trade logistics and 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.
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. (ANI)