adb-approves-350m-loan-to-boost-india-s-logistics-exports

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

 

According to a statement from the regional development bank dated 6 December, the loan will fund the second subprogram of efforts by the Indian government to establish a comprehensive policy, planning, and institutional framework at the state and city levels.  

 

The development of India’s logistics sector is seen as crucial to enhancing the competitiveness of its manufacturing industry. ADB highlighted that ongoing government reforms, including strategic policy measures, infrastructure improvements, and digital integration, aim to transform the logistics landscape.  

 

This transformation is expected to lower costs, improve efficiency, generate employment opportunities, and promote gender inclusion, thereby driving sustainable economic growth.  

 

India has launched several initiatives to address challenges in the logistics sector, such as the Prime Minister Gati Shakti-National Master Plan (PMGS-NMP) and the National Logistics Policy (NLP). These initiatives aim to improve infrastructure, streamline processes, and promote digitalisation.  

 

“The development of the logistics sector significantly impacts the competitiveness of the manufacturing sector. Greater logistics efficiency strengthens supply chain resilience, reduces transaction costs, and boosts export competitiveness,” said ADB Senior Public Management Economist Sameer Khatiwada.  

 

He added that the integration of digital technologies and standardised processes enables smoother goods movement, which is vital for manufacturing growth.  

 

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

 

The government aims to achieve $2 trillion in goods and services exports by 2030. ADB stated that its programme supports this goal by enhancing productivity, reducing logistics costs, and contributing to lower greenhouse gas emissions.