The Government of India, in collaboration with the Asian Development Bank (ADB), has launched the Strengthening Multimodal and Integrated Logistics Ecosystem (SMILE) Programme. This initiative aims to enhance India’s logistics sector, promote multimodal transport, and improve trade efficiency. The ADB has approved a $350 million policy-based loan under the 2nd subprogram of SMILE, reinforcing India’s commitment to transforming logistics infrastructure.
What is the SMILE Programme?
The SMILE Programme is a Programmatic Policy-Based Loan (PBL) initiative designed to support India’s logistics sector reforms. It focuses on:
✅ Enhancing Institutional and Policy Framework: Strengthening inter-ministerial coordination for better logistics planning.
✅ Boosting Private Sector Participation: Encouraging investment in Multimodal Logistics Parks (MMLPs) and other infrastructure projects.
✅ Improving External Trade Logistics: Streamlining operations for imports and exports.
✅ Advancing Smart and Automated Systems: Promoting digitalization to improve service delivery and efficiency.
The program is aligned with India’s National Logistics Policy (NLP) 2022 and aims to bring India’s logistics performance closer to global benchmarks.
Key Features of the SMILE Programme
| Feature | Description |
| Loan Amount | $350 million from ADB under the 2nd subprogram |
| Objective | Strengthen multimodal transport and logistics efficiency in India |
| Key Focus Areas | Policy reform, private sector participation, smart automation |
| Implementing Agencies | Ministry of Commerce & Industry, Ministry of Road Transport & Highways, National Highways Logistics Management Ltd. (NHLML) |
| Target Beneficiaries | Businesses, logistics companies, exporters/importers, transporters |
Need for the SMILE Programme
🚚 High Logistics Costs: India’s logistics costs are 13-14% of GDP, compared to 8-10% in developed countries. SMILE aims to reduce these costs.
📦 Global Competitiveness: India ranks 38th in the World Bank’s Logistics Performance Index (LPI) 2023. The initiative will help improve trade efficiency.
🏗️ Infrastructure Challenges: India needs better multimodal transport connectivity (road, rail, ports, and inland waterways).
🌍 Export Growth: Efficient logistics are crucial for India’s goal of achieving $2 trillion in exports by 2030.
Implementing Agencies & Their Roles
1. Ministry of Commerce & Industry
- Oversees policy reforms and trade facilitation.
- Works on integrating logistics services across different modes.
2. Ministry of Road Transport & Highways (MoRTH)
- Develops highway infrastructure and Multimodal Logistics Parks (MMLPs).
- Aims to reduce transportation time and costs.
3. National Highways Logistics Management Ltd. (NHLML)
- A subsidiary of National Highways Authority of India (NHAI).
- Responsible for setting up 35 MMLPs across India.
Multimodal Logistics Parks (MMLPs): A Key Component
🔹 MMLPs are integrated hubs combining rail, road, air, and waterways.
🔹 India plans to develop 35 MMLPs under the PM Gati Shakti Master Plan.
🔹 Reduced cost & time for cargo movement, improving efficiency.
Flowchart: Working of MMLPs under SMILE
Expert Opinions on SMILE Programme
📢 ADB President Masatsugu Asakawa:
“This initiative will modernize India’s logistics sector, enhance trade competitiveness, and unlock economic potential through infrastructure development.”
📢 Commerce & Industry Minister, India:
“SMILE aligns with India’s vision of becoming a $5 trillion economy by improving logistics efficiency and reducing trade bottlenecks.”
Expected Impact of SMILE Programme
📉 Reduction in Logistics Costs: Bringing it closer to the global average of 8-10% of GDP.
🚀 Boost to Exports: Enhancing India’s “Ease of Doing Business” ranking.
💼 Employment Generation: Creating thousands of direct and indirect jobs.
🌱 Sustainability: Encouraging green and smart logistics solutions.
Conclusion
The SMILE Programme is a significant step toward modernizing India’s logistics ecosystem. By strengthening infrastructure, multimodal connectivity, and trade efficiency, it will help reduce costs, boost exports, and create jobs. The partnership with ADB ensures financial and technical support, making this initiative a game-changer for India’s logistics industry.
As India moves toward becoming a global logistics hub, the successful implementation of SMILE will play a crucial role in transforming trade and transport operations in the country.