New Delhi: The Government of India and the Asian Development Bank (ADB) signed a $350 million policy-based loan under the second subprogram of the Strengthening Multimodal and Integrated Logistics Ecosystem (SMILE) programme.

The agreement involves 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 programme, designed as a programmatic policy-based loan, supports wide-ranging reforms in India’s logistics sector. Its two subprograms aim to expand the country’s manufacturing sector and enhance the resilience of its supply chains.

The programme establishes a comprehensive policy framework to improve logistics efficiency by strengthening institutional bases for multimodal infrastructure development, standardising logistics assets, enhancing external trade logistics, and adopting smart, low-emission systems.

The ongoing reforms are expected to transform India’s logistics landscape by reducing costs, increasing efficiency, and promoting private investment. These changes are anticipated to create substantial employment opportunities, improve gender inclusion, and drive sustainable economic growth.

BI Bureau