India’s logistics sector is undergoing a transformative shift. It is fueled by infrastructure upgrades, policy reforms, and technology integration. This sector is poised for a major transformation with the SMILE (Strengthening Multimodal and Integrated Logistics Ecosystem) programme, supported by the Asian Development Bank (ADB).
Announced in collaboration with the Ministry of Commerce and Industry, SMILE aims to significantly reduce India’s high logistics costs, which currently stand at 13–14% of GDP, compared to the global average of 8%, while improving overall efficiency and infrastructure. According to the National Logistics Policy (2022) and PM Gati Shakti, the initiative aligns closely with India’s strategic push to modernize its logistics ecosystem and promote inclusive economic growth.
Backed by a $250 million policy-based loan from ADB, the SMILE programme supports key policy reforms, digitization, and infrastructure development to create a multimodal, integrated logistics network. As per the DPIIT, this initiative will facilitate a shift from a fragmented, road-heavy transport system to a more sustainable and cost-effective multimodal approach involving railways, waterways, and air cargo, enhancing accessibility to remote areas.
One of SMILE’s key components is the establishment of the Unified Logistics Interface Platform (ULIP), which integrates 30+ digital systems across ministries for real-time data sharing. This digital backbone aims to streamline cargo movement, reduce dwell times, and promote transparency. Additionally, the programme encourages Private Sector Participation and investment in logistics parks, freight corridors, and warehousing infrastructure. It aims to further enhance India’s competitiveness in global trade and ensure long-term economic resilience.
India has ranked 38th in the World Bank’s “Logistics Performance Index (LPI) 2023 and SMILE is bringing a significant leap in previous rankings. The programme is expected to push this further by addressing inefficiencies and creating a seamless, tech-enabled logistics environment.
By integrating the goals of PM Gati Shakti, National Logistics Policy, and Make in India, the programme represents a pivotal shift in India’s economic and infrastructure policy. As emphasized by DPIIT and NITI Aayog, these reforms are vital for making India a global manufacturing hub and reducing export bottlenecks. Thus, SMILE is more than a policy initiative, it’s a transformative leap toward an efficient, affordable, and future-ready logistics ecosystem across the country.