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FM said that India Post will meet the rising needs of Viswakarmas, new entrepreneurs, women, self-help groups, MSMEs, and large business organisations
India Post, with its 1.5 Lakh rural post offices, IPBB and 2.4 Lakh Dak Sevaks, will be repositioned to act as a catalyst for the rural economy, said Sitharaman
The Centre will also launch the ‘Rural Prosperity and Resilience’ programme to address underemployment in agriculture through skilling, investment and technology
To boost the rural economy, India Post will be transformed into a major public logistics organisation, finance minister Nirmala Sitharaman said in her speech for the Union Budget 2025-26.
This will meet the rising needs of Viswakarmas, new entrepreneurs, women, self-help groups, MSMEs, and large business organisations, the minister added.
“India Post, with its 1.5 Lakh rural post offices, complemented by the India Post Payments Bank and a vast network of 2.4 Lakh Dak Sevaks, will be repositioned to act as a catalyst for the rural economy,” the FM said.
The announcement was in line with the Centre’s focus on expanding the scope of India Post.
Last year, the FM announced the establishment of over 100 branches of India Post Payments Bank (IPBB) in Northeast India. In September 2024, telecom minister Jyotiraditya Scindia had said that the government was keen on transforming India Post into a logistics company and increasing its revenue by 50-60% over the next 3-4 years.
State-backed payments bank IPBB leverages India’s more than 1.55 Lakh post offices as access points and 3 Lakh postmen to offer doorstep banking services. Apart from savings accounts and money transfer, it offers insurance via third-party players as well as utility payments.
In her budget speech, FM Sitharaman also said that the government plans to launch a comprehensive multi-sectoral ‘Rural Prosperity and Resilience’ programme in partnership with states. This project will address underemployment in agriculture through skilling, investment, technology, and invigorating the rural economy.
The goal is to generate ample opportunities in rural areas so that migration is an option, but not a necessity, the finance minister added.
On the rural economy front, the FM said that the Centre will extend support to National Cooperative Development Corporation (NCDC) for its lending operations for the cooperatives sector.
