ADB Approves $350 Mn Loan to Enhance India’s Logistics Sector and Export Competitiveness

The Asian Development Bank (ADB) has approved a $350 million policy-based loan to support India in strengthening and modernizing its logistics sector. This funding will finance the second subprogram under the Strengthening Multimodal and Integrated Logistics Ecosystem Program. The goal is to create a comprehensive policy, planning, and institutional framework at the state and city levels.

Key Objectives

• Implementing strategic policy reforms to improve infrastructure and streamline logistics processes.
• Promoting the integration of digital technologies to facilitate smoother movement of goods.
• Advancing green transition guidelines for inland waterways and promoting environmentally sustainable logistics practices.
• Creating substantial employment opportunities across urban and rural regions.

The ADB's support aligns with the Indian government's initiatives like the Prime Minister Gati Shakti-National Master Plan (PMGS-NMP) and the National Logistics Policy (NLP), aiming to modernize infrastructure and promote digitization.

"The development of the logistics sector has a profound impact on the manufacturing sector's competitiveness. Improved logistics efficiency enhances supply chain resilience, reduces transaction costs, and boosts export competitiveness,” said ADB Senior Public Management Economist Sameer Khatiwada. “The integration of digital technologies and standardized processes facilitates smoother movement of goods, which is crucial for manufacturing growth.”

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