The Asian Development Bank (ADB) announced a new loan to finance the second subprogram aimed at supporting the Indian government’s efforts to develop a robust policy, planning, and institutional framework for logistics at state and city levels.

The development of India’s logistics sector is critical to enhancing the competitiveness of its manufacturing industry. Through strategic policy reforms, infrastructure upgrades, and digital integration, ongoing governmental initiatives are transforming the logistics landscape, ADB stated.

This transformation is set to lower costs, enhance efficiency, generate employment, and promote gender inclusion, ultimately driving sustainable economic growth. The government has introduced key initiatives, including the Prime Minister Gati Shakti-National Master Plan (PMGS-NMP) and the National Logistics Policy (NLP), to address constraints in the logistics sector. These programs focus on improving infrastructure, streamlining processes, and fostering digitization.

“The logistics sector plays a pivotal role in enhancing the manufacturing sector’s competitiveness. Improved logistics efficiency bolsters supply chain resilience, reduces transaction costs, and boosts export potential,” said ADB Senior Public Management Economist Sameer Khatiwada. He further highlighted the role of digital technologies and standardized processes in ensuring smoother goods movement, a key enabler for manufacturing growth.

From 2000 to 2022, India’s goods exports surged from USD 48.5 billion to USD 467.5 billion, while industrial exports rose from USD 39.6 billion to USD 317.4 billion. The government is targeting USD 2 trillion in goods and services exports by 2030.

Also Read | India and ADB Sign $175 Million Loan Agreement to enhance Madhya Pradesh Road Connectivity

The ADB emphasized that its program supports India’s ambitions by enhancing productivity, reducing logistics costs, and cutting greenhouse gas emissions, contributing to a more sustainable economic future.

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