In the first full budget of the Modi Government 3.0, several significant announcements were made, addressing various sectors such as income tax, rural development, and more.
Expansion of India Post and Payment Services
One of the key highlights of the budget was the expansion of India Post and India Post Payment Bank.
Finance Minister Nirmala Sitharaman shared plans to enhance India Post’s network, which already includes 1.5 lakh rural post offices,
and to expand the India Post Payment Bank, which has 2.4 lakh postal workers. The aim is to make these services central to boosting the rural economy.
The expanded services will include community hubs in rural areas, institutional account services, direct benefit transfers (DBT), cash withdrawals, EMI pick-ups, credit for micro-enterprises, insurance, and various digital offerings.
Furthermore, the reach of India Post Payment Bank will be extended to even more rural regions.
Transforming India Post into a Major Logistics Company
Another important announcement was the transformation of India Post into a large logistics firm. This effort is part of the government’s strategy to modernize postal services and align them with digital trends.
The new logistics company will cater to a wide variety of customers, including new entrepreneurs, women, self-help groups, MSMEs, and large businesses.
The proposal to transform India Post into a logistics company was initially made by Telecom Minister Jyotiraditya Scindia in September 2024.
The government’s goal is to increase India Post’s revenue share from 50% to 60% within the next 3-4 years.
