New Delhi, December 20 (IANS). The Government of India and the Asian Development Bank (ADB) on Friday signed an agreement for a $350 million loan to strengthen the domestic manufacturing sector and improve supply chains under the Second Subprogramme of the Strengthening Multimodal and Integrated Logistics Ecosystem (SMILE) programme. Signed.
According to the Ministry of Commerce and Industry, the SMILE program is a programmatic policy-based loan (PBL) to support the government in undertaking comprehensive reforms in the logistics sector in India.
This approach involves two subprograms. These are aimed at expanding India’s manufacturing sector and improving the resilience of its supply chains.
“The collaboration between the Government of India and ADB reflects a shared commitment to foster growth and innovation in the logistics sector, supporting India’s broader economic development goals,” the ministry said in a statement.
The signatories to the loan agreement included the Department of Economic Affairs (DEA) of the Finance Ministry, the Department for Promotion of Industry and Internal Trade (DPIIT) of the Ministry of Commerce and Industry and ADB.
The SMILE program operates a comprehensive policy framework to enhance logistics efficiency through strengthening the institutional bases for the development of multimodal logistics infrastructure at the national, state and city levels.
It also helps standardize warehousing and other logistics assets to strengthen supply chains and encourage a larger private sector, improve efficiency in external trade logistics, and adopt smart systems for efficient and low-emission logistics.
According to the ministry, the development of India’s logistics sector is important to enhance the competitiveness of its manufacturing sector. Through strategic policy reforms, infrastructure development and digital integration, the ongoing reforms are set to transform the logistics landscape. This transformation is expected to reduce costs, improve efficiency, create ample employment opportunities and promote gender inclusion – promoting sustainable economic growth.
On Thursday, the government and ADB signed a $42 million loan to provide coastal and riparian protection to enhance the resilience of local communities and natural ecosystems in Maharashtra. The loan provided by ADB will help restore and stabilize Maharashtra’s coastline and protect the livelihoods of coastal communities.
–IANS
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