Recently, the Asian Development Bank approved a whopping $250 million loan for the development of the logistics sector in India. This policy-based loan came at a time when the sector is going through major reforms as a part of the National Logistics Policy and Prime Minister Gati Shakti’s National Master Plan. It aims at supporting the Centre’s reforms, modernising the logistics sector, driving technology adoption, improving operational efficiency, and steadfastly pursuing infrastructural development so as to help the sector grow exponentially as a whole in the coming years. In addition, it would also support the Ministry of Commerce and Industry’s initiatives to issue standards for warehousing.
Besides, it would also help this sector adopt innovative strategies and tools to bring down the carbon footprint and promote green, sustainable, and smart logistics, thus bringing down the carbon emissions significantly.
“The loan will finance the first sub-program 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.
“Efficient movement of goods from production and distribution centres to both domestic and external markets is critical to lowering costs and enhancing productivity and competitiveness. Manufacturing, services, and trade in India stand to benefit immensely from the significant reforms in logistics undertaken by the government,” said ADB South Asia Department Director of Public Management, Financial Sector, and Trade Sabyasachi Mitra.