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.
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.
The ADB-funded SMILE Program has been designed to establish a policy framework that enhances logistics efficiency through:
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:
The program incorporates gender-inclusive policies to ensure equal opportunities for women in the logistics sector. The key gender-focused initiatives include:
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:
| 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. |
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