The Asian Development Bank (ADB) has launched the Strengthening Multimodal and Integrated Logistics Ecosystem (SMILE) program, a strategic initiative aimed at transforming India’s logistics sector. With a focus on enhancing infrastructure, reducing operational costs, and boosting efficiency, the program aligns with national priorities like the National Logistics Policy and PM Gati Shakti National Master Plan.
SMILE is designed to overhaul India’s logistics landscape by establishing a robust policy framework that strengthens multimodal transport systems, standardises warehousing practices, and fosters digitalisation across supply chains. This transformation is expected to significantly reduce logistics costs, making Indian industries more competitive on a global scale. At the heart of SMILE is the goal to create an integrated logistics ecosystem that seamlessly connects various transport modes, including road, rail, air, and waterways. This integration is critical for India, where fragmented logistics networks often lead to inefficiencies and higher costs. By streamlining these processes, SMILE aims to improve supply chain resilience, particularly for the manufacturing sector, which is pivotal to India’s economic growth.
The program also emphasises the importance of private sector participation, offering incentives to attract investments in logistics infrastructure. Standardising warehousing and logistics assets will not only enhance operational efficiency but also encourage greater private sector involvement, fostering a competitive environment.
In line with the government’s vision of Atmanirbhar Bharat, SMILE will strengthen domestic manufacturing capabilities by improving the efficiency of logistics operations. This, in turn, will reduce dependence on inefficient transport systems and support the development of India as a global manufacturing and supply chain hub. Moreover, SMILE places a strong emphasis on gender inclusion. It proposes dedicated measures to ensure gender-responsive practices within logistics infrastructure, including the development of gender audit mechanisms for land ports and integrated check posts. This focus reflects India’s commitment to creating equitable and inclusive economic opportunities, particularly in sectors traditionally dominated by men.
Digital transformation is another cornerstone of the SMILE initiative. By adopting smart systems and low-emission technologies, the program aims to modernise logistics management, reduce carbon footprints, and promote sustainable supply chain practices. This is especially significant in the context of India’s environmental goals and the global push towards greener economies. SMILE is expected to enhance India’s position in the Logistics Performance Index, a global benchmark that assesses the efficiency of logistics systems. Improved performance in this index will not only attract foreign investments but also create new job opportunities across the logistics value chain. The program’s comprehensive approach spanning policy reforms, infrastructure development, digitalisation, and gender inclusivity demonstrates a commitment to long-term economic resilience and sustainable growth. By fostering a more efficient, eco-friendly, and inclusive logistics ecosystem, SMILE is set to play a pivotal role in India’s journey towards becoming a global logistics and manufacturing powerhouse.
