USD 350 Mn Loan From ADB For SMILE Program

(MENAFN- KNN India) New Delhi, Dec 21 (KNN)
The Government of India has entered into a significant agreement with the Asian Development Bank (ADB), securing a USD 350 million policy-based loan as part of the Strengthening Multimodal and Integrated Logistics Ecosystem (SMILE) program's second subprogram.

The loan agreement was jointly signed by representatives from the Department of Economic Affairs, Ministry of Finance; Department for Promotion of Industry and Internal Trade; and the Asian Development Bank.

According to an official statement from the Ministry of Commerce & Industry, this strategic initiative aims to bolster India's manufacturing capabilities and enhance supply chain resilience.

The SMILE program, structured as a programmatic policy-based loan, represents a comprehensive approach to implementing extensive reforms within India's logistics sector.

The program's framework focuses on improving logistics efficiency through the development of multimodal logistics infrastructure across national, state, and city levels.

Key objectives include the standardisation of warehousing and logistics assets, which is expected to attract increased private sector investment.

The initiative also emphasises the implementation of smart systems for efficient and environmentally conscious logistics operations, alongside improvements in external trade logistics.

The transformation of India's logistics sector stands as a crucial element in enhancing the nation's manufacturing competitiveness. Through the implementation of strategic policy reforms, infrastructure enhancement, and digital integration, these comprehensive reforms are expected to yield multiple benefits.

These include reduced operational costs, improved efficiency, significant job creation, and enhanced gender inclusion, all contributing to sustainable economic growth.

This collaborative effort between the Indian government and the Asian Development Bank demonstrates their mutual dedication to advancing growth and innovation within the logistics sector, aligning with India's broader economic development objectives.

The initiative represents a significant step forward in modernising India's logistics infrastructure and strengthening its position in global supply chains.

(KNN Bureau)

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