Unione Budget 2025: India Post to be transformed into large logistic body with 1.5 lakh rural post offices

NEW DELHI: Finance minister Nirmala Sitharaman, while presenting the Union budget 2025, announced the government's plans to reform Indian postal services by setting up 1.5 lakh rural post offices. She said that the initiative would play a crucial role in boosting the rural economy by transforming India Post into a major public logistics organisation.
As part of the budget announcements, the government also revealed plans to set up a urea plant in Assam with a production capacity of 12.7 lakh tonnes, aiming to strengthen the country’s agricultural sector.
FM Sitharaman further announced measures to enhance the investment and turnover limits for businesses, ensuring greater financial flexibility. She highlighted the contribution of micro, small and medium enterprises (MSMEs), which account for 45 per cent of India’s exports, and reaffirmed the government’s commitment to supporting them.
To improve credit access, the government will enhance the credit guarantee cover for MSMEs, making it easier for them to secure funding.
On the rural economy front, the Centre will extend support to the National Cooperative Development Corporation to strengthen its lending operations, further aiding small businesses and farmers in rural areas.
This budget marks 14th consecutive Budget presented under Prime Minister Narendra Modi’s leadership since 2014, focusing on economic expansion and rural empowerment.