ADB approves $350 million loan to boost India logistics, exports – Times of India

New Delhi: Asian Development Bank (ADB) has approved a $350 million policy-based loan to help India strengthen and modernize its logistics sector.
According to a regional development bank statement, dated December 6, the loan will finance the second sub-programme, which supports the Government of India’s efforts to create a comprehensive policy, planning, and institutional framework at the state and city levels. will support
The development of India’s logistics sector is critical in enhancing the competitiveness of its manufacturing sector.
Through strategic policy reforms, infrastructure improvements, and digital integration, the government’s ongoing reforms are poised to transform the logistics landscape, ADB said.
This change is expected to not only reduce costs and improve efficiency, but also create employment opportunities and promote gender inclusion – driving sustainable economic growth.
The Government of India has launched several strategic policies to address bottlenecks in the logistics sector, including; Prime Minister Gati Shakti National Master Plan (PMGS-NMP) and National Logistics Policy (NLP). These initiatives are aimed at improving infrastructure, streamlining processes and promoting digitalisation.
ADB Senior Public Management Economist Sameer Khatiwada said, “The development of the logistics sector has a profound impact on the competitiveness of the manufacturing sector. Better logistics performance increases supply chain flexibility, lowers transaction costs, and Increases export competitiveness,” said Sameer Khatiwada, senior public management economist at ADB.
“The integration of digital technologies and standardized processes facilitates the seamless movement of goods, which is critical to the growth of manufacturing.”
From 2000 to 2022, India’s merchandise exports increased from $48.5 billion to $467.5 billion, while industrial exports increased from $39.6 billion to $317.4 billion.
The government aims to increase exports of goods and services to $2 trillion by 2030.
ADB said its program is helping India achieve this goal by increasing productivity and contributing to reductions in greenhouse gas emissions by reducing goods movement and logistics costs.