India Post’s Need For Speed

February 26, 2025 • Estimated Reading Time: 8 minutes

In today’s edition — India Post’s logistics makeover won’t be an easy feat; Indian markets regulator Securities and Exchange Board of India (SEBI)'s measures to reduce equity derivatives trading risk; and tourism increasing carbon emissions. 

DECODE THE NEWS

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

India’s bustling logistics sector has a new—but familiar—contender stepping into the ring. India Post, best known for delivering everything from letters to ID proofs, is now setting its sights on e-commerce and FMCG deliveries, aiming for a bigger slice of the logistics pie.

But can this government giant compete in an already saturated industry?

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 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.

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.

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,” Amitabh Singh, Chief Postmaster General, Maharashtra Circle, India Post told The Core.

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,” Ravi Goel, Chief Business Officer of Rapidshyp told The Core.

Still, even with technological upgrades and a market dominated by names like Swiggy, Zomato, Shadowfax and DTDC, can India Post reposition itself as a modern logistics force—or will it remain stuck in the shadows of its own legacy?.

CORE NUMBER

€49 billion

This is the total value of Russian crude oil that India imported in the third year of the Ukraine invasion, according to PTI. The €49 billion purchase marks an 8% year-on-year increase, as India capitalised on discounted Russian oil amid Western sanctions. Russian crude now accounts for nearly 40% of India's total oil imports, a substantial rise from less than 1% pre-2022. Russia’s total fossil fuel earnings during the period reached €242 billion, with India, China, and Turkey accounting for 74% of revenues. Despite India importing discounted Russian crude oil, domestic petrol prices have remained high. As of February 25, 2025, the average petrol price stands at Rs 103.5 per litre. 

FROM THE PERIPHERY

— 🛑 After repeatedly expressing concerns over Indians losing money in the equity derivatives market, SEBI has proposed more measures to reduce risks and chances of manipulation. Among the suggestions include introducing position limits for single stocks and index derivatives and methodology for calculating open interest using a 'delta' framework, Business Standard reported. A SEBI report last year said that 11.3 million individual traders had lost more than Rs 1.80 lakh crore over the three years between FY22 and FY24. Most of those who lost money were retail investors. 

—🪧 Adani Wilmar has rebranded as AWL Agri Business Limited after shareholder approval, reflecting a stronger focus on agriculture and food. The company will be launching new products in FY26, targeting both budget and premium kitchen essentials, driven by anticipated urban demand recovery. Its Rs 1,300 crore food processing plant in Haryana began operations last month. Previously, Adani Enterprises scrapped plans to demerge its FMCG arm due to public shareholding norms. Despite record Q2 profits, Adani Wilmar saw an overall decline in FY24 performance of Rs 313 crore.

—💰 India is finalising a $1 billion capital subsidy plan to boost its solar manufacturing sector and cut reliance on Chinese imports, The Economic Times reported. Proposed by the Ministry of New and Renewable Energy, the plan focuses on strengthening wafer and ingot production—India’s weakest solar link. Backed by top advisers of Prime Minister Narendra Modi’s office, the plan aims to mirror the success of India’s mobile manufacturing push. Despite strong module and cell capacity, India remains dependent on China for polysilicon, the raw material for wafers and ingots. Cabinet approval is expected in the coming months.

— 🏠 Average housing prices across India's top eight cities rose by 10% YoY to ₹11,266 per sq ft in Q4 2024 (Oct-Dec 2024), driven by strong demand, according to a report by the Confederation of Real Estate Developers' Associations of India. Delhi NCR saw the sharpest increase at 31%, followed by Bengaluru at 23%. Meanwhile, unsold inventory fell 5% annually, marking a fourth consecutive quarterly decline. Pune recorded the highest drop in unsold units at 14%, closely followed by Hyderabad at 13%. Although there seems to be sustained demand, coupled with declining inventory, affordability concerns persist as prices continue to climb across key metropolitan regions..

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