Parcel and Logistics Services register 70% growth; Revenue Potential pegged at Rs.10,000 Crore
Published: May 26, 2026
By TIOLCorplaws News Service
NEW DELHI, MAY 26, 2026: UNION Minister of State for Communications and Rural Development, Dr. Chandra Sekhar Pemmasani, in an interview with DD India, said that India Post's revenue has surged to Rs.15,373 crore in the financial year 2025-26, marking one of the most significant financial milestones in the department's 170-year history. The Minister of State noted that the department's revenue stood at approximately Rs.11,500 crore in 2016, with an average annual growth of Rs.200-300 crore in the intervening years. This year, however, witnessed an unprecedented single-year increase of Rs.2,100 crore, nearly ten times the historical average.
The Minister of State attributed this turnaround to a structured dual-pronged approach which was a top-down strategy involving identification of the total addressable market, target-setting, and accountability, combined with a bottom-up strategy of workforce engagement. He credited the leadership of Union Minister of Communications Shri Jyotiraditya Scindia for establishing an organizational framework that has identified bottlenecks, fixed them, and delivered results.
Furthermore, the Minister of State underscored that India Post's parcel and logistics segment has registered a 70% growth, driven by technology integration and expanded e-commerce partnerships. When the current leadership assumed charge, total parcel revenue stood at approximately Rs.600 crore. With the introduction of OTP-based delivery, SMS tracking, UPI and digital payment acceptance, and B2B tie-ups with major e-commerce platforms, parcel services alone are estimated to have the potential to generate up to Rs.10,000 crore in revenue.
Route rationalisation has been undertaken to enable faster deliveries, and after extensive piloting, India Post launched 24-hour and 48-hour Speed Post delivery services across six metro cities, supported by large-scale public awareness campaigns. Dr. Pemmasani said that as traditional letter mail becomes increasingly marginal, logistics and parcel services represent the primary growth frontier for the department.
A cornerstone of India Post's modernisation drive is the Rs.5,800 crore investment under the Advanced Postal Technology (APT) initiative as part of IT 2.0. The Minister of State outlined the department's vision of fully digital, end-to-end services, enabling citizens to purchase savings instruments and insurance policies such as PLI and RPLI through a browser with a single click, download digital certificates instantly, and receive matured policy amounts directly into their bank accounts, all without visiting a post office.
Postal savings accounts, which offer an interest rate of 4%, among the highest in the country and significantly above the approximately 2.5% offered by leading commercial banks, are expected to see substantially wider adoption through this digital accessibility push. Security architecture under IT 2.0 includes facial recognition for system access, E-KYC, Aadhaar linking, and full compliance with national cloud security protocols.
India Post, through India Post Payments Bank (IPPB), is currently distributing approximately Rs.45,000 crore annually through Direct Benefit Transfer (DBT), making it one of the largest last-mile welfare delivery channels in the country. IPPB representatives, equipped with mobile phones, biometric devices, and printers, deliver doorstep banking services including fund disbursements and bill collections directly to rural households.
The department is implementing the Sukanya Samriddhi Scheme in saturation mode, with 3.8 crore girl children currently enrolled under the scheme. Women-centric savings products, Self-Help Group (SHG) linkages, and high-interest rural savings accounts are being actively promoted through the Gramin Dak Sevak network, a force of approximately 2.5 lakh personnel present in virtually every village, described by the Minister of State as the "backbone" of India Post. Dr Pemmasani also noted that the department's future vision includes demography-based suggestions to DBT beneficiaries on suitable insurance and savings products, further strengthening their financial safety net.
Along with infrastructure upgradation, India Post has undertaken a massive capacity building and behavioural transformation programme across its workforce. Training sessions are being conducted for every 100 employees, focusing on customer interaction, service delivery, and sales skills. Dr. Chandra Sekhar Pemmasani emphasised that this cultural and mindset shift, moving from a transactional to a customer-centric orientation, is as integral to the department's transformation as any technological intervention. Gramin Dak Sevak sammelans were organised across the country to directly engage field staff, explain the department's financial position, and convey their role in realising the vision of Viksit Bharat.
In parallel, India Post is undertaking a comprehensive physical modernisation of its post office network. Urban post offices are being revamped with an investment of Rs.60-70 lakh per facility, featuring digital counters, streamlined Aadhaar updation services, and shared workspaces on their premises. Next-generation post offices are being set up in universities and educational institutions, incorporating cultural elements and digital amenities to connect with India's youth. In rural areas, the focus remains on saturation coverage, ensuring every household is reached, enrolled in applicable schemes, and educated about the full range of postal financial services available to them.
