India Post is the most important delivery and logistics chain in the country: Jyotiraditya Scindia

India Post, the government-operated postal system—with its large geographical and human scale—functions as an invisible artery in the country, according to Jyotiraditya M Scindia, Union Minister of Communications and Development of North Eastern Region.

“India Post is not visible [but it is] the biggest and most important delivery and logistics chain,” Scindia said, in a conversation with Shradha Sharma, Founder and CEO of YourStory.

He explained the significance of India Post through the analogy of the human body and the heart. Every human being has a heart from which blood flows; but the heart cannot function until the entire body receives blood through the arteries, he said.  

In the same way, the Department of Posts in India plays the vital connecting role. 

“The post office should be the window to the world, to the common man,” he noted, recalling a phrase he had coined earlier.

Massive scale

India Post operates a vast delivery system with 1,65,000 post offices touching 6,50,000 villages. Scindia believes this reach is unmatched globally.

He said no country has a delivery system that’s as “big, powerful, and direct” as India’s postal department, fondly referring to the organisation’s 4,50,000 members as “family”.

“There is no reason that we can’t serve everyone. And that’s why we have to change our thinking,” he remarked, as he spoke about how the department has to take a “new direction”.

“We have to channelise their capacity… And our department has to take India’s permanent asset to the global level,” Scindia noted.

The postal department is undergoing changes and introducing new products. 

Today, the Speed Post service is operational, alongside regular post. 

The postal department is also undergoing changes and introducing new products. According to the minister, the postal department is launching new categories: 24-hour Speed Post for delivery within 24 hours, 48-hour Speed Post, and 72-hour Speed Post. 

“We are bringing international mail. So now your responsibility (addressing  postal department employees) is towards the whole world,” he said, 

For generations, people have placed their trust and faith in the postman, according to Scindia. 

“Because my postman knows every house… every family… every son and daughter… every grandfather, grandmother, husband and wife. And the relationship of that faith is our biggest treasure,” he stated. 

“With the relationship of that faith, in every service of the people of the country, we should be able to grow together. This should be our resolve.”

The minister believes that ordinary post is on a “slight decline across the world” as modern technology takes over. “Mobile phones have come, SMS messages have come,” he noted. 

Remembering his days in boarding school, he said, “My parents used to write letters to me, and after lunch we would queue outside the dining hall waiting for mail. There was even that old song Chitti aayi hai.”

He recalled being a 13- or 14-year-old in boarding school and writing home using the blue inland letter that cost 15 paise back then. 

“The habit of writing letters and the emotions that came with it were special. I still have those letters from my mother and father.”

“The world is changing, and when the world changes, people change too. And when people change, so must we. And that’s why our India Post is taking a new form,” he said.

The shift

Scindia detailed the strategic shift of India Post from a traditional letter carrier to a modern provider of comprehensive public and financial services.

Under his guidance, the department underwent a significant re-branding exercise, including transforming the symbol to a swish to show that “our emotions keep flowing, they don’t get stuck”, as well as designing new bags and a business process re-engineering exercise.

It adopted the slogan, “Dak sewa jan sewa (Post service is public service).”

India Post also adopted IT 2.0 capabilities. The postman now delivers banking services, including KYC accounts, RTGS, and NEFT money transfers via a handheld phone.

The post offices are now centres for crucial public services, such as Aadhaar card enrollments. The department also runs passport service centres, which have facilitated the creation of 1.85 crore passports, according to Scindia.

This vast network supports huge financial operations, including 32 crore Post Office Savings Bank accounts. Deposits in the Post Office Savings Bank have grown from Rs 6 lakh crore in 2014 to Rs 21 lakh crore today, the minister said. He also said that the India Post Payments Bank has nearly 12 crore customers and deposits of Rs 22,000 crore.

Move to logistics 

Scindia addressed the necessary strategic redirection required to harness India Post’s capacity and overcome its financial deficit.

The postal department is not just about letters or banking, or even mail and parcels, said Scindia, adding,  “Today, when consumers buy goods, how will those goods reach people in villages? They will only be able to reach, when our channel is used.”

India Post is transitioning into a dedicated logistics organisation. “I have sent the India Post team to visit UK Mail, Royal Mail, La Poste in France, Japan Post, the USPS in the United States, and DHL. Now we have to transform ourselves into a logistics organisation,” Scindia noted.

To solidify its position, India Post is entering into collaborations and agreements with major last-mile delivery organisations, including Amazon and Shiprocket. It is also working with airlines like Air India for agreements, according to the minister.

While acknowledging a current annual loss of close to Rs 26,000 crore or Rs 9,000 crore minus pensions, Scindia said the primary goal is to leverage the department’s capacity and transform India Post into a profitable organisation within the next five years. 

“My endeavour with everyone’s contribution is to convert it (India Post) into a profit centre,” he remarked.

“There will be new responsibilities, new energy, new capacity, and new determination, and we must reach new heights together for India. The Prime Minister’s vision of Viksit Bharat 2047 should include your (postal department employees) most significant contribution,” Scindia noted.