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Picture Courtesy: BUSINESS STANDARD

Context:

The Indian government and the Asian Development Bank (ADB) signed a $350 million policy-based loan under the second subprogramme of the Strengthening Multimodal and Integrated Logistics Ecosystem (SMILE) program.

What is the goal of the SMILE programme?

The SMILE programme aims to make India a global logistics leader by improving efficiency, resilience, and sustainability.

It aims to improve the logistics sector through strategic reforms and a collaborative effort involving key government departments and ADB.

Which government departments are involved in the SMILE programme?

The SMILE programme is a collaboration between the Department of Economic Affairs (DEA) of the Ministry of Finance, the Department for Promotion of Industry and Internal Trade (DPIIT) of the Ministry of Commerce and Industry.

What are the key components of the SMILE programme?

Strengthening institutional frameworks by Increasing capacity at the national, state, and city levels to better integrate logistics infrastructure.

Standardising warehousing involves establishing uniform standards to streamline supply chains and attract private investment.

Improving trade logistics involves increasing the efficiency of India's external trade operations.

Promoting smart, low-emission systems by utilising modern technologies to boost efficiency while lowering environmental impact.

What are the expected outcomes of the SMILE programme?

The SMILE programme is expected to reduce logistics costs, increase operational efficiency, and generate significant job opportunities.

It also prioritises gender inclusion, ensuring that growth benefits are distributed equitably across sectors.

How does the SMILE programme contribute to gender inclusion?

The programme prioritises gender inclusion by ensuring that reforms promote equitable growth. It aims to create equal opportunities for women and other under-represented groups, creating a more inclusive logistics sector.

Impact on the manufacturing industry

The SMILE programme to improve the logistics ecosystem by increasing the competitiveness of the manufacturing sector, which will create a more efficient supply chain, and allow manufacturers to cut costs and improve delivery times, boosting their global competitiveness.