Union Budget 2025: India Post to become 'large public logistics organisation' as part of Budget reforms
“1.5 lakh rural post offices complemented by India Post Payments Bank and a vast network of 2.4 lakh daak sevaks will be repositioned to act as a catalyst for the rural economy,” Sitharaman said.
- Feb 1, 2025,
- Updated Feb 1, 2025 12:17 PM IST
As Finance Minister Nirmala Sitharaman took the floor during the Budget session in Parliament on Saturday, she outlined an ambitious vision for India Post. Announcing the Union Budget for 2025-26, Sitharaman declared that India Post will be transformed into a “large public logistics organisation,” marking a significant shift in the role of one of India’s oldest institutions.
Central to this transformation is the integration of 1.5 lakh rural post offices, which will be complemented by the India Post Payments Bank and a sprawling network of 2.4 lakh daak sevaks.
“1.5 lakh rural post offices complemented by India Post Payments Bank and a vast network of 2.4 lakh daak sevaks will be repositioned to act as a catalyst for the rural economy,” Sitharaman said. This repositioning aims to address the growing demands of new entrepreneurs, women, self-help groups, micro, small, and medium enterprises (MSMEs), as well as large business organisations.
Beyond India Post’s overhaul, Sitharaman also announced measures to strengthen the cooperative sector. She confirmed that the government would extend support to the National Cooperative Development Corporation (NCDC) to bolster its lending operations. This move is expected to enhance financial assistance within the cooperative ecosystem, providing much-needed capital to fuel growth and development.
These initiatives reflect the government’s focus on enhancing rural infrastructure and economic resilience, leveraging existing networks like India Post to drive inclusive growth while ensuring that cooperative sectors have the financial muscle to thrive in an evolving economy.
As Finance Minister Nirmala Sitharaman took the floor during the Budget session in Parliament on Saturday, she outlined an ambitious vision for India Post. Announcing the Union Budget for 2025-26, Sitharaman declared that India Post will be transformed into a “large public logistics organisation,” marking a significant shift in the role of one of India’s oldest institutions.
Central to this transformation is the integration of 1.5 lakh rural post offices, which will be complemented by the India Post Payments Bank and a sprawling network of 2.4 lakh daak sevaks.
“1.5 lakh rural post offices complemented by India Post Payments Bank and a vast network of 2.4 lakh daak sevaks will be repositioned to act as a catalyst for the rural economy,” Sitharaman said. This repositioning aims to address the growing demands of new entrepreneurs, women, self-help groups, micro, small, and medium enterprises (MSMEs), as well as large business organisations.
Beyond India Post’s overhaul, Sitharaman also announced measures to strengthen the cooperative sector. She confirmed that the government would extend support to the National Cooperative Development Corporation (NCDC) to bolster its lending operations. This move is expected to enhance financial assistance within the cooperative ecosystem, providing much-needed capital to fuel growth and development.
These initiatives reflect the government’s focus on enhancing rural infrastructure and economic resilience, leveraging existing networks like India Post to drive inclusive growth while ensuring that cooperative sectors have the financial muscle to thrive in an evolving economy.