India Post could launch banking and other services under a new postal policy to be unveiled bythe country’s government this year that would also force private courier companies to register
their activities.The twin-track policy is designed to speed up modernisation and diversification of India Postwhile establishing a new policy for the whole postal market, Indian ministers announced thisweek.
Kapil Sibal, Indian Minister of Communications and Information Technology, said at a Round Tableon National Postal Policy with stakeholders that “in view of the IT revolution India Post has toembrace the changes and be prepared for the challenges of tomorrow”.
“We have started the process of formulating the National Postal Policy with a two-prongedapproach – to develop services that assist, facilitate, enhance and quicken the process ofdevelopment aimed at inclusive growth, and to reposition India Post to make it a self-sufficientand cost-effective provider of these services,” Sibal told reporters after the meeting organised bythe Federation of Indian Chambers of Commerce and Industry (FICCI).
Sachin Pilot, Indian Minister of State for Communication and IT, highlighted India’s massiveefforts to modernise its post offices adapting them to global service standards. “We need to createviable revenue models and adopt the latest technologies for improving service delivery. India Postis gearing up to face future challenges,” he commented.
In a first move towards diversification, India Post has already applied for a banking licencefrom the Reserve Bank of India to be permitted to offer more financial services through postoffices.
Meanwhile, the Communications Minister said the government wanted to register private couriercompanies in order to gain an overview of the market and to ensure they were operating legally, buthe stressed the government did not want to licence them.
Sibal emphasised that the government encouraged more involvement from private companies in thecountry’s postal market to provide value-added, innovative products and extend the sector’s productrange beyond the current core functions. “There are tremendous opportunities for the privatecorporate sector to use its ingenuity to create innovative products and delivery mechanisms throughthe Indian postal network,” he explained.
In its discussion document on postal policy, the Indian government said the future policy shouldbe “in sync” with the country’s overall economic goals and “the national development agenda”. Itshould cover a clearly defined postal USO, ensuring nationwide basic postal services, which couldbe financed by different options: state funding, a monopoly or a voluntary USO fund.
Moreover, there was scope for “increased cooperation” between multinational operators and IndiaPost in cross-border mail, parcels and logistics, especially for last-mile deliveries, and also forsharing of postal infrastructure, the document noted.
The Indian courier, express and parcel (CEP) market has grown 20% on average in recent years andis now worth €1 billion, the government said. Increasing internet usage will boost e-commerce infuture, it predicted.
