New Delhi: The Asian Development Bank (ADB) sanctioned a $350 million policy-based loan to bolster India’s logistics sector. The loan will support the government’s wide-ranging reforms to modernise the sector and achieve increased economic competitiveness, an ADB release stated.
The loan finances the second subprogram of the Multimodal and Integrated Logistics Ecosystem Program. According to the release, this program backs the government’s efforts to establish a comprehensive policy, planning, and institutional framework for the logistics sector at the federal, state, and city levels.
It program builds upon the reforms introduced during the first subprogram. It aims to institutionalize policies that strengthen interagency coordination and standardize processes to encourage private sector investment and improve operational efficiency.
“The program is helping India achieve its target of $2 trillion in exports of goods and services by 2030 by enhancing productivity and transfer of goods and reducing logistics costs,” the release read.
It further noted that the program has supported India’s reform efforts, leading to improved Logistics Performance Index and reduced logistics costs.
Sameer Khatiwada, ADB Senior Public Management Economist, said, “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. The integration of digital technologies and standardized processes facilitates smoother movement of goods, which is crucial for manufacturing growth.”
Also read: Who are India’s strategic affairs thinkers of the next decade? ThePrint Intellectuals List