$350 Million ADB Loan Approved to Boost India's Logistics and Exports
WAREHOUSING & LOGISTICS

$350 Million ADB Loan Approved to Boost India's Logistics and Exports

The Asian Development Bank (ADB) has approved a $350 million policy-based loan to support India in strengthening and modernizing its logistics sector.

According to a statement from the regional development bank, dated December 6, the loan will finance the second subprogram, which aims to support the Indian government's efforts to create a comprehensive policy, planning, and institutional framework at both the state and city levels.

The development of India's logistics sector is seen as crucial for enhancing the competitiveness of its manufacturing sector.

ADB highlighted that through strategic policy reforms, infrastructural improvements, and digital integration, the government's on-going reforms are expected to transform the logistics landscape.

The transformation is anticipated to reduce costs, improve efficiency, create employment opportunities, and promote gender inclusion, thus driving sustainable economic growth.

The Government of India has introduced several strategic policies to address constraints in the logistics sector, including the Prime Minister Gati Shakti-National Master Plan (PMGS-NMP) and the National Logistics Policy (NLP). These initiatives are aimed at improving infrastructure, streamlining processes, and promoting digitization.

Sameer Khatiwada, Senior Public Management Economist at ADB, mentioned that the development of the logistics sector has a profound impact on the competitiveness of the manufacturing sector. He stated that improved logistics efficiency enhances supply chain resilience, reduces transaction costs, and boosts export competitiveness. He further emphasized that the integration of digital technologies and standardized processes facilitates smoother movement of goods, which is critical for manufacturing growth.

Between 2000 and 2022, India's goods exports increased from $48.5 billion to $467.5 billion, while industrial exports grew from $39.6 billion to $317.4 billion.

The government has set a target to reach $2 trillion in exports of goods and services by 2030.

The ADB confirmed that its program is assisting India in achieving this target by enhancing productivity, facilitating the transfer of goods, reducing logistics costs, and contributing to the reduction of greenhouse gas emissions.

The Asian Development Bank (ADB) has approved a $350 million policy-based loan to support India in strengthening and modernizing its logistics sector. According to a statement from the regional development bank, dated December 6, the loan will finance the second subprogram, which aims to support the Indian government's efforts to create a comprehensive policy, planning, and institutional framework at both the state and city levels. The development of India's logistics sector is seen as crucial for enhancing the competitiveness of its manufacturing sector. ADB highlighted that through strategic policy reforms, infrastructural improvements, and digital integration, the government's on-going reforms are expected to transform the logistics landscape. The transformation is anticipated to reduce costs, improve efficiency, create employment opportunities, and promote gender inclusion, thus driving sustainable economic growth. The Government of India has introduced several strategic policies to address constraints in the logistics sector, including the Prime Minister Gati Shakti-National Master Plan (PMGS-NMP) and the National Logistics Policy (NLP). These initiatives are aimed at improving infrastructure, streamlining processes, and promoting digitization. Sameer Khatiwada, Senior Public Management Economist at ADB, mentioned that the development of the logistics sector has a profound impact on the competitiveness of the manufacturing sector. He stated that improved logistics efficiency enhances supply chain resilience, reduces transaction costs, and boosts export competitiveness. He further emphasized that the integration of digital technologies and standardized processes facilitates smoother movement of goods, which is critical for manufacturing growth. Between 2000 and 2022, India's goods exports increased from $48.5 billion to $467.5 billion, while industrial exports grew from $39.6 billion to $317.4 billion. The government has set a target to reach $2 trillion in exports of goods and services by 2030. The ADB confirmed that its program is assisting India in achieving this target by enhancing productivity, facilitating the transfer of goods, reducing logistics costs, and contributing to the reduction of greenhouse gas emissions.

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