ADB approves $250 million loan for strengthening India's logistics

The Asian Development Bank (ADB) has approved a $250 million policy-based loan to support the centre's reforms aimed at strengthening and modernizing logistics infrastructure, improving efficiency, and lowering costs.

"The loan will finance the first subprogram of the Strengthening Multimodal and Integrated Logistics Ecosystem Program, which supports the government’s efforts to create a comprehensive policy, planning, and institutional framework at the federal, state, and city levels," an ADB statement said.

This will rationalize India’s high cost of logistics and reduce greenhouse gas emission, the statement added.


The program will help to strengthen supply chains by simplifying external trade logistics and domestic cargo movements, modernizing warehouses, improving business processes with integrated digital platforms, and stimulating private investments in the sector.

“Manufacturing, services, and trade in India stand to benefit immensely from the significant reforms in the logistics undertaken by the government,” said ADB South Asia Department Director of Public Management, Financial Sector and Trade, Sabyasachi Mitra.

To facilitate multimodal logistics, the subprogram promotes reforms that reduce cumbersome processes that businesses face to obtain approvals for cargo clearance as well as the creation of digital systems that integrate regulations, processes, and logistics data. The program promotes the facilitation of cargo movement through coastal shipping and inland waterways to strengthen multimodal transport.

The program also supports the Ministry of Commerce and Industry’s initiatives to issue standards for warehousing, which would encourage operational efficiency and private sector investment.