The Government of India and the Asian Development Bank (ADB) have formalized a $350 million policy-based loan under the second phase of the Strengthening Multimodal and Integrated Logistics Ecosystem (SMILE) program. The agreement was signed by representatives from the Department of Economic Affairs (Ministry of Finance), the Department for Promotion of Industry and Internal Trade (Ministry of Commerce and Industry), and ADB.
The SMILE program is designed to support wide-ranging policy reforms in India’s logistics sector. It aims to bolster the nation’s manufacturing capabilities and create more resilient supply chains by introducing a comprehensive framework for improving logistics efficiency. The program is designed to address critical aspects of multimodal logistics infrastructure by strengthening institutional frameworks at various levels, promoting seamless integration across transport modes, and enabling the development of efficient logistics networks.
A significant focus is on standardizing practices for warehousing and logistics assets, ensuring more streamlined supply chains, and creating an environment conducive to attracting private sector investments. Additionally, the initiative emphasizes enhancing efficiencies in external trade logistics to boost competitiveness in global markets.
Advanced technologies and systems are being adopted to create smarter, low-emission logistics solutions, aligning with sustainability goals and driving innovation across the sector. These measures collectively aim to transform the logistics landscape into a more robust, efficient, and environmentally friendly ecosystem.
A robust logistics sector is crucial for the competitiveness of India’s manufacturing industry. The ongoing reforms under the SMILE initiative aim to reduce costs, boost efficiency, create significant employment opportunities, and enhance gender inclusion. These efforts are expected to contribute to sustainable economic growth while improving India’s position in global supply chains.
This partnership between India and ADB underscores a shared commitment to transforming the logistics landscape, supporting broader economic goals, and driving innovation in infrastructure and trade systems. Established in 1966, ADB is dedicated to fostering sustainable development and poverty eradication across Asia and the Pacific, with 69 member nations, 49 from the region.
