“India Post will no longer remain cost centre but will evolve into profit centre for GoI,” says Scindia, setting 2029 profitability target
Among eight new parcel products that are set to be launched in January, including an upgraded Speed+ Post service promising 24-hour delivery across key routes, and Next-Day Delivery for parcels, Union Minister Jyotiraditya Scindia shared how DoP has appointed a Chief Technology Officer with six vice-CTOs to modernize service delivery.
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In a comprehensive press briefing on the Department of Posts’ year-long achievements, Union Minister for Communications and Development of North Eastern Region Jyotiraditya Scindia outlined an ambitious transformation plan aimed at repositioning India Post as a profit-generating arm of the government by 2029.
Attended by Minister of State for Communications Dr. Chandra Sekhar Pemmasani, Secretary (Posts) Vandita Kaul, and Secretary (Telecom) Neeraj Mittal, Scindia highlighted the department’s evolving role from a traditional postal network to a modern logistics, financial services, and technology-driven organization with deep rural penetration.
Six-vertical structure and new product launches
Scindia revealed that India Post’s operations have been reorganized into six key verticals - Domestic and International Mail, Parcel, Postal Life Insurance (PLI), Financial Services (including Post Office Savings Bank), and Citizen-Centric Services such as Aadhaar enrolment and Passport Seva Kendras.
To support this, the department has also established four horizontal pillars - technology, human resources, finance, and customer satisfaction and, for the first time, appointed a Chief Technology Officer (CTO) with six vice-CTOs to modernize service delivery.
Read more: India Post embarks on tech-driven transformation to become premier public logistics platform
Among the most anticipated rollouts is the launch of eight new mail and parcel products, including an upgraded “Speed+ Post” service promising 24-hour delivery across key routes, and Next-Day Delivery for parcels, cutting current timelines of 3–5 days to just a few hours.
These products will be piloted in January 2026, with full-scale national rollout by March, the Minister shared.
Scindia further confirmed that India Post is in active discussions with e-commerce giants such as Amazon and Flipkart, aiming to become their preferred last-mile and mid-mile logistics partner. “We will not only handle end deliveries but also serve as mid-mile connectors where others cannot reach,” he said.
Strengthening global and domestic logistics
India Post has been actively studying global postal systems such as Royal Mail, USPS, Japan Post, and DHL to benchmark its operations and bring global best practices to Indian logistics.
Partnerships with major e-commerce and logistics players like Amazon and Rocket India are being finalized to expand India Post’s first-mile-to-last-mile delivery capabilities, alongside automation in sorting and parcel handling hubs, he shared.
A new Centre of Excellence for Technology is already operational, Scindia noted, offering end-to-end tracking, monitoring, and customer notification services through a comprehensive CRM solution.
Expanding citizen services and financial inclusion
Scindia emphasized India Post’s expanding footprint in citizen-centric services. In the past year alone, the department has processed 3.5 crore Aadhaar updates and 30 lakh passport applications, handling a total of 1.85 crore passports since inception of the Postal Passport Seva Kendras- 85% of which are run by India Post.
On the financial front, India Post continues to be a crucial channel for inclusion.
Through Indiapost Payments Bank (IPPB) - a 100% subsidiary - the department has crossed 12 crore active accounts and mobilized ₹21,000 crore in deposits.
Read more: India’s postal network defies gobal decline; posts Rs 2,353 cr in letter delivery revenue in 2024-25
Originally slated to turn profitable in 2027, IPPB has already achieved profitability ahead of schedule, marking a significant milestone for the postal network’s financial arm.
Additionally, 81 lakh Sukanya Samriddhi Yojana accounts were opened last year through post offices, and PM Vishwakarma Yojana toolkits were delivered to 10.5 lakh beneficiaries via postal channels.
A breakthrough: India’s ‘Digital Address Code’
In what Scindia called a “historic innovation”, the department's launch of Digital Address Code (DAC) is touted as a unique alpha-numeric identifier for every address, akin to a “digital dress code for India”.
DAC, now known as DIGIPIN, is a unique, precise digital address for every location in India, generated by India Post. It is a geo-coded, grid-based system using a 10-character alphanumeric code to represent the geospatial coordinates of a specific address, unlike traditional PIN codes which cover larger areas.
Replacing the traditional PIN code system (introduced in 1972), DAC allows precision-based address mapping, enabling faster logistics, emergency services, and e-commerce deliveries.
The innovation, developed entirely by the Department of Posts, is rolled out under the Prime Minister’s vision of “Vasudhaiva Kutumbakam”, with plans to extend this technology to other government departments and private sectors, the Minister revealed.
“This innovation will ensure that no address is ever lost in translation again,” Scindia said, adding that the system could support geospatial governance, emergency medical response, and address verification services for delivery apps and fintech players.
From cost centre to profit centre by 2029
Scindia concluded by affirming that the Department of Posts - once seen as a cost burden - is now undergoing a business process restructuring aimed at transforming it into a profitable entity by 2029.
“With automation, digital innovation, and partnerships, India Post will no longer remain a cost centre but will evolve into a profit centre for the Government of India,” he said.
Additionally, the minister said India Post is working on a four-to-five-year transformation plan that includes automation, RFID tagging, laser scanning, and technology-led business process restructuring. The goal is to shift from heavy manual operations to a digitally integrated logistics and delivery system.
“If we want to transition from being a cost centre to a profit centre, we must measure every transaction- be it parcel delivery, passport, Aadhaar, mutual funds, or even G2G services—with a defined margin. Every service must yield measurable revenue,” he said.
He credited the transformation to Prime Minister Narendra Modi’s vision, noting that India Post - often called the “living nerve of the nation” - will continue to serve as the heartbeat of India’s economic and social development.
