India’s Logistics Sector Set for Transformative Growth with ADB’s $350 Million Boost

The Asian Development Bank (ADB) has strategically approved a $350 million policy-based loan to propel India’s logistics sector into a new era of efficiency, technological integration, and economic competitiveness through comprehensive national reforms and modernization initiatives.

The loan represents a critical investment in the second phase of the Strengthening Multimodal and Integrated Logistics Ecosystem Programme, which aims to establish robust policy frameworks at federal, state, and municipal levels. By institutionalizing innovative policies and standardizing processes, the program seeks to attract significant private sector investments and dramatically improve operational efficiency across India’s complex transportation infrastructure.

Two landmark government initiatives—the Prime Minister Gati Shakti National Master Plan and the National Logistics Policy—are central to this transformative strategy. These groundbreaking programs are designed to comprehensively address existing sector constraints through infrastructure enhancement, process streamlining, and extensive digitalization efforts.

The strategic intervention has already yielded tangible results, with India experiencing substantial improvements in the World Bank’s Logistics Performance Index and achieving significant reductions in logistics-related expenditures. Key program achievements include establishing sophisticated institutional arrangements for logistics planning, implementing advanced grain storage strategies, and developing green transition guidelines for inland waterways.

Also Read:- Logistics Sector Sees a Slowdown: Truck Rentals Dip in November

Sameer Khatiwada, Senior Public Management Economist at ADB, emphasized the profound implications of this development, highlighting how enhanced logistics efficiency directly correlates with manufacturing sector competitiveness. The program aims to create more resilient supply chains and reduce transaction costs by facilitating smoother goods movement through digital technology integration and standardized processes.

The Indian government’s ambitious vision extends beyond immediate sector improvements. Its bold target is to reach $2 trillion in goods and services exports by 2030. This comprehensive program is strategically positioned to support that goal by increasing productivity, optimizing goods transfer mechanisms, and simultaneously contributing to reduced greenhouse gas emissions.

Union Minister of Road Transport and Highways Nitin Gadkari provided additional context, expressing confidence in reducing India’s logistics costs from the current 14-16 percent to single-digit levels within the next two to three years. By leveraging expressway infrastructure and technological innovations, Gadkari anticipates dramatically reducing travel times between major cities and aligning India’s logistics efficiency with global benchmarks.

The ADB loan represents more than a financial transaction; it symbolizes a pivotal moment in India’s economic transformation, promising to revolutionize the logistics landscape through strategic investment, policy innovation, and technological integration.

Source By:- https://www.itln.in/