Virendra Pandit
New Delhi: The Asian Development Bank (ADB) has approved a USD 350 million policy-based loan to support India in strengthening and modernizing the logistics sector and exports.
ADB said in a statement that the proposed loan will finance the second subprogram, supporting New Delhi’s efforts to create a comprehensive policy, planning, and institutional framework at the state and city levels, the media reported on Saturday.
The development of India’s logistics sector is necessary to enhance its competitiveness in the manufacturing sector. Through strategic policy reforms, infrastructural improvements, and digital integration, the government’s ongoing reforms are set to transform the logistics landscape, the regional development bank said.
This transformation would not only reduce costs and improve efficiency, but also create employment opportunities and promote gender inclusion-driving sustainable economic growth.
India has launched a series of strategic policies to address logistics sector constraints, including the Prime Minister Gati Shakti-National Master Plan (PMGS-NMP) and the National Logistics Policy (NLP), aiming to improve infrastructure, streamline processes, 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’s 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.”
“From 2000 to 2022, India’s goods export increased from USD 48.5 billion to USD 467.5 billion while industrial exports grew from USD 39.6 billion to USD 317.4 billion. The government aims to reach USD 2 trillion in exports of goods and services by 2030.”
The ADB said its program is helping India achieve this target by enhancing productivity and transfer of goods and reducing logistics costs while contributing to the reduction of greenhouse gas emissions.