In the first full budget of the Modi Government 3.0, several significant announcements were made, covering a wide range of sectors from income tax to rural development.
One of the major highlights came from Finance Minister Nirmala Sitharaman, who discussed the expansion of India Post and India Post Payment Bank.
Expansion of India Post and India Post Payment Bank
Sitharaman revealed plans to strengthen India Post, which has a network of 1.5 lakh rural post offices, and India Post Payment Bank, with 2.4 lakh postal workers.
The goal is to turn these services into key players for boosting the rural economy.
The expanded services will include rural community hubs, institutional account services, direct benefit transfers (DBT), cash withdrawal, EMI pick-ups, credit services for micro-enterprises, insurance,
and other digital services. Additionally, the services of India Post Payment Bank will be further expanded to reach more rural areas.
India Post to Become a Major Logistics Firm
The Finance Minister also announced that India Post would be converted into a large logistics company. This transformation is part of the government’s broader plan to modernize postal services and make them more digital.
The move will help meet the growing needs of various groups, including Vishwakarmas, new entrepreneurs, women, self-help groups, MSMEs, and large business organizations.
The idea to turn India Post into a logistics company was initially proposed by Telecom Minister Jyotiraditya Scindia in September 2024, with the goal of increasing India Post’s revenue from 50% to 60% within the next 3-4 years.
Turning India Post into a Logistics Firm
An exciting move announced in the budget is the transformation of India Post into a large logistics company. This initiative is part of the government’s effort to modernize postal services and align them with the digital age.
It will help meet the needs of a wide range of customers, from new entrepreneurs and women to MSMEs and large businesses.
This plan had previously been introduced by Telecom Minister Jyotiraditya Scindia in September 2024, who stated that the government aims to increase India Post’s revenue from 50% to 60% in the next 3-4 years.