Budget 2025: India Post to Be Transformed into Major Public Logistics Entity

Budget 2025: India Post to Be Transformed into Major Public Logistics Entity

SUMMARY

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.

You have reached your limit of free stories
Become A Startup Insider With Inc42 Plus

Join our exclusive community of 10,000+ founders, investors & operators and stay ahead in india's startup & business economy.

2 YEAR PLAN
₹19999
₹7999
₹333/Month
UNLOCK 60% OFF
Cancel Anytime
1 YEAR PLAN
₹9999
₹4999
₹416/Month
UNLOCK 50% OFF
Cancel Anytime
Already A Member?
Discover Startups & Business Models

Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the hottest startup deals, supercharge your innovation projects, and stay updated with expert curation.

Budget 2025: India Post to Be Transformed into Major Public Logistics Entity-Inc42 Media
How-To’s on Starting & Scaling Up

Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn to validate ideas, acquire customers, secure funding, and navigate the journey to startup success.

Budget 2025: India Post to Be Transformed into Major Public Logistics Entity-Inc42 Media
Identify Trends & New Markets

Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence, understand market landscapes, and decode emerging trends to make informed decisions.

Budget 2025: India Post to Be Transformed into Major Public Logistics Entity-Inc42 Media
Track & Decode the Investment Landscape

Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful investors, and keep track of upcoming funds, accelerators, and more.

Budget 2025: India Post to Be Transformed into Major Public Logistics Entity-Inc42 Media
Budget 2025: India Post to Be Transformed into Major Public Logistics Entity-Inc42 Media
You’re in Good company