Can India Post’s Makeover Keep Pace With Today’s Fast Logistics?

In the 1990s and even into the early 2000s, it was routine to see a postman in a khaki uniform at your doorstep every day. Fast forward to today, this is now a rarity. Now it is mostly private logistics companies that deliver packages. Official communications and bills are now only restricted to the online form.

While India Post seems to have lost its relevance with the disappearance of correspondence through physical mail, it has now become a surprise challenger in India’s crowded logistics market. Historically synonymous with letters and ID deliveries, is now setting its sights on a much bigger slice of the pie: handling e-commerce and fast moving consumer goods (FMCG) deliveries at scale.

In the latest budget announcement, finance minister Nirmala Sitharaman unveiled plans to transform India Post into a public logistics powerhouse aimed at supporting women entrepreneurs, businesses, and self-help groups.

India Post, once the leading player in India for sending packages, has lagged behind as technology and services have evolved. This government-backed service will be faced with multiple challenges as it competes in an industry already teeming with agile private players.

However, India Post's vast and unmatched network sets it apart from its competitors. While tier 1 cities are crowded with established players, India Post’s true potential lies in tier 2, tier 3, and rural markets.

“They're going to face tough competition in tier 1 cities, but things will get a lot easier in tier 2 and tier 3 markets. And let’s not overlook tier 4 cities—they are very much in play now. Take Jharsuguda (Odisha), for example—it’s said to be one of the biggest markets for luxury goods in the country,” said Keku Bomi Gazder, an industry expert, speaking to The Core.

Strategic Partnerships

Established in 1854 under British colonial rule, India Post was once the backbone of India’s communication network, connecting cities to even the most remote villages with its vast reach and uniform postage rates. Over time, it grew into the world’s largest postal network, boasting over 1,50,000 post offices, mostly in rural areas.

However, things started to slip in the 1990s with the rise of the internet, mobile phones, and private courier services. As faster, tech-savvy players like Blue Dart, DTDC, and Delhivery took over the market, India Post found itself with outdated infrastructure and falling behind on the tech front, struggling to keep up in a rapidly evolving logistics landscape.

To strengthen its logistics game, India Post has been forging strategic alliances. A recent development came in February 2025 with a partnership with Rapidshyp, an e-commerce shipping platform, which now leverages India Post’s vast infrastructure to serve 19,000 pin codes using advanced logistics tech.

“Since we are already integrated with nearly all national and regional courier partners in India, India Post has taken our reach a step further by helping us connect with even the most remote corners of the country,” said Ravi Goel, Chief Business Officer of Rapidshyp told The Core.

Additional partnerships with platforms like Shiprocket and Pickrr have further boosted last-mile delivery capabilities, particularly benefiting startups and MSMEs. In October 2024, Amazon also joined hands with India Post to extend delivery reach into underserved markets.

“The reason giants like Amazon partner with us is our widespread presence, especially in tier 2, tier 3, and rural areas. We are scaling up infrastructure and mechanising deliveries starting from Maharashtra,” said Amitabh Singh, Chief Postmaster General, Maharashtra Circle, India Post told The Core.

Tech Challenges

Despite its vast network, India Post faces a major obstacle: outdated technology. As the logistics giant tries to transition from its traditional, paper-driven operations to modern, high-speed e-commerce logistics, scalability and efficiency remain significant challenges.

“Scaling up swiftly is a hurdle. But with government backing, capital infusion, and loads of experience, their main focus should be sharpening IT systems and integrating efficiently with suppliers. On reach and expertise? They’re already ahead of the curve,” said Gazder.

In response, India Post has started offering services that mirror those of private competitors, such as evening deliveries and Sunday operations. “We are working to keep up with what our competitors are doing. Normally, we don’t deliver after 5 pm but we will soon be offering late evening deliveries from April,” Singh said.

To bridge its technology gap, India Post is collaborating with tech-driven logistics companies like Rapidshyp, iThink Logistics, NimbusPost, etc aiming to modernise its operations with advanced integration platforms.

“With our technology combined with IndiaPost's vast network, we can now offer coverage across every pin code in India. This means our customers—e-commerce sellers—can receive orders from anywhere in the country and fulfil them seamlessly,” Goel added.

However, tech integration alone won’t be enough to boost India Post’s credibility in the competitive e-commerce landscape.

“Beyond tech upgrades, they need to sell themselves globally. When you think of e-commerce or quick commerce, India Post isn’t exactly top of mind. It’s more about Zomato, Swiggy, Shadowfax, or DTDC. To change that, they will need a serious push in advertising and marketing to stay relevant with the masses,” Gazder pointed out.

Why Businesses Are Turning to India Post

Despite the technological hurdles, businesses are increasingly turning to India Post for one key reason: its unmatched reach. Even major logistics providers like Delhivery, Xpressbees, Ecom Express, and Shadowfax, which cover about 90-95% of the country, struggle to penetrate India’s most remote areas.

“Even though my existing courier partners cover about 90-95% of the country—with big names like Delhivery, Xpressbees, Ecom Express and Shadowfax on board—they still miss the most remote areas. That is where India Post steps in, covering every corner of the country,” Goel explained.

In tier 1 cities, India Post isn’t the preferred delivery option due to stiff competition. Instead, its focus is shifting toward tier 2, tier 3, and remote regions, leveraging its extensive network to carve out a niche.

“In Mumbai, you probably won’t see much postal delivery with all the Amazon parcels around. I notice this whenever I visit the delivery centres — out of a thousand deliveries, maybe 70-80% are from Amazon. But in Mumbai, they have other options. In other places, we are the automatic choice,” Singh added.

India Post’s partnership with Amazon alone has seen significant growth. In 2024, India Post managed around 100,000 parcels a month. That number has since jumped to 170,000 parcels per month, with nearly 75% of these shipments destined for tier 2 and tier 3 cities.

Beyond e-commerce, India Post is also handling deliveries for FMCG companies and agricultural products, managing volumes that surpass what other companies combined are handling in rural regions.

“Nestle and other FMCG companies are using our network to deliver products to shopkeepers in rural villages. Currently, we are operational in Kolhapur, Thane, and Sindhudurg and we are scaling it to cover all of Maharashtra. We are just finalising more locations,” Singh said.

These rural deliveries fill a critical gap where private players often find it commercially unfeasible to set up operations. Another competitive advantage? Pricing.

India Post’s Secret Weapon

India Post offers one of the most economical courier services in the country, especially for lighter shipments. While most courier services start with a 250-gram slab, India Post’s Speedpost pricing begins at just 50 grams, making it an attractive choice for sending documents or small packages.

“However, if you're sending something heavier, like a 500-gram parcel, you might want to go with other courier partners, because India Post’s business parcel service has a minimum weight slab of 2 kilos. Business parcels are typically shipped via surface mode, whereas Speedpost is their air mode option. No other courier offers this kind of service for smaller weight shipments like gift vouchers,” Goel noted.

Can India Post Keep Pace?

While competitors race to offer same-day or even 10-minute deliveries, India Post is not playing that game—at least not yet. For now, its focus remains on coverage and reliability rather than speed.

“India Post has already nailed nationwide connectivity—something new players are still scrambling to establish. Also, being a government-backed entity means service over profit is their mantra. Their priority is coverage and delivery, not racing against the clock for a 30-minute drop-off—at least, not for now,” Gazder remarked.

However, India Post is aiming to improve its delivery timelines. The new business model aims for shipments received by 12:30 am to be delivered by noon the next day.

“We are not worried about the quick delivery services that are offered. We are not competing with hyper-local delivery services—that's a completely different ball game. Of course, it creates an expectation that this quick delivery is the standard, but that's not our focus. We are not entering the realm of one-hour or even 10-20-minute grocery deliveries. It is just not our core strength,” Singh said.