ADB-Funded SMILE Program to Enhance India’s Logistics Efficiency and Reduce Costs

The Asian Development Bank (ADB) has funded the Strengthening Multimodal and Integrated Logistics Ecosystem (SMILE) Program to improve India’s logistics infrastructure, lower logistics costs, and increase efficiency. The initiative supports the implementation of the National Logistics Policy (NLP) and PM Gati Shakti National Master Plan by promoting multimodal logistics, warehousing standardization, and digital transformation in trade logistics.

Introduction to the SMILE Program

The Strengthening Multimodal and Integrated Logistics Ecosystem (SMILE) Program is a transformative initiative aimed at overhauling India’s logistics infrastructure. The program seeks to optimize the logistics sector by integrating multimodal transportation networks, standardizing warehousing practices, and digitizing trade logistics.

By addressing inefficiencies in logistics, the program aims to bolster India’s competitiveness in global trade while reducing costs and enhancing the resilience of supply chains. The SMILE Program is crucial for aligning India’s logistics sector with global standards and making India a manufacturing and supply chain hub.

Objectives of the SMILE Program

The ADB-funded SMILE Program has been designed to establish a policy framework that enhances logistics efficiency through:

1. Strengthening Institutional Infrastructure

  • The program will reinforce the institutional framework at the National, State, and City levels to facilitate the development of multimodal logistics infrastructure.
  • It will ensure seamless integration of different modes of transport, including road, rail, air, and waterways, to create a cohesive logistics ecosystem.

2. Standardizing Warehousing and Logistics Assets

  • The program promotes the standardization of warehouses and logistics assets to improve supply chain efficiency.
  • It seeks to attract private sector investments in logistics infrastructure by ensuring uniformity in storage facilities and logistics parks.

3. Enhancing External Trade Logistics Efficiency

  • The initiative will focus on improving port connectivity, streamlining customs clearance, and enhancing trade facilitation.
  • This will help exporters and importers by reducing time and cost associated with international trade logistics.

4. Digital Transformation in Logistics

  • The program promotes the adoption of smart logistics systems to enable real-time tracking, automated processes, and data-driven decision-making.
  • It focuses on reducing carbon emissions by adopting sustainable logistics solutions, including electric vehicles and alternative fuels.

Impact on India’s Logistics Performance and Competitiveness

The SMILE Program is expected to have a significant impact on India’s logistics sector and its ranking in the Logistics Performance Index (LPI). The initiative will:

  • Improve logistics competitiveness and reduce supply chain bottlenecks.
  • Lower the overall cost of logistics, which currently stands at 13-14% of India’s GDP, compared to 8-9% in developed countries.
  • Enhance job creation in the logistics sector by facilitating the growth of private investments.

Gender Inclusion Measures in SMILE Program

The program incorporates gender-inclusive policies to ensure equal opportunities for women in the logistics sector. The key gender-focused initiatives include:

  • Conducting gender audits of land ports to assess the level of gender inclusivity in trade logistics.
  • Ensuring that integrated check posts (ICPs) across India meet minimum gender responsiveness standards.
  • Encouraging women’s participation in trade logistics through skill development programs and employment opportunities.

Alignment with Atmanirbhar Bharat and Economic Growth

The SMILE Program supports Atmanirbhar Bharat (Self-Reliant India) by strengthening domestic manufacturing, reducing dependency on inefficient logistics, and improving integration into the global trade network.

By improving logistics efficiency, the program will:

  • Reduce delays in the supply chain, benefiting Indian exporters and manufacturers.
  • Strengthen India’s position as a global manufacturing hub.
  • Encourage foreign direct investment (FDI) in logistics and transportation.

Summary of SMILE Program

Aspect Details
Why in News? ADB-funded SMILE Program launched to improve India’s logistics efficiency and reduce logistics costs.
Objective Enhance multimodal logistics infrastructure, standardize warehousing, boost trade logistics efficiency, and promote digitalization.
Institutional Strengthening Development of multimodal logistics at National, State, and City levels.
Standardization of Warehousing Uniform warehousing and logistics asset development to attract private investments.
Enhancing Trade Logistics Improving port connectivity, customs clearance, and trade facilitation.
Digital Transformation Adoption of smart logistics systems to enable real-time tracking and low-emission logistics.
Impact on Logistics Performance Improved Logistics Performance Index (LPI) ranking, reduced supply chain bottlenecks, and lower logistics costs.
Gender Inclusion Measures Gender audits of land ports, ensuring minimum gender standards at integrated check posts.
Alignment with Atmanirbhar Bharat Strengthening domestic manufacturing, improving logistics efficiency, and integrating into global trade networks.
Government’s Statement Minister of State, Shri Jitin Prasada, announced details in Rajya Sabha on 28 March 2025.

 

Sumit Arora

As a team lead and current affairs writer at Adda247, I am responsible for researching and producing engaging, informative content designed to assist candidates in preparing for national and state-level competitive government exams. I specialize in crafting insightful articles that keep aspirants updated on the latest trends and developments in current affairs. With a strong emphasis on educational excellence, my goal is to equip readers with the knowledge and confidence needed to excel in their exams. Through well-researched and thoughtfully written content, I strive to guide and support candidates on their journey to success.

Recent Posts

Top-5 Indian Forts that the British Could Never Conquer, Know About Them

India is home to many forts that tell stories of courage, strength and smart planning.…

13 hours ago

Which Indian District is Known as the Copper City? Know About It

India is a land full of natural resources, including many including many valuable metals. One…

14 hours ago

World Day for Cultural Diversity: Fostering Unity in Diversity

World Day for Cultural Diversity for Dialogue and Development, observed every year on May 21,…

15 hours ago

Top 10 Crypto-Friendly Countries for Investment and Living in 2025

In 2025, global interest in cryptocurrencies has surged to unprecedented levels. With the rise of…

16 hours ago

Top 10 Strongest Currencies in the World in 2025 (Highest Valued in INR)

The United Nations recognizes 180 official currencies across 195 countries, yet only a handful of…

16 hours ago

National Anti-Terrorism Day 2025: Promoting Unity Against Violence

India observes National Anti-Terrorism Day every year on May 21 to commemorate the death anniversary…

16 hours ago