Did India and Russia Just Sign a Landmark Postal Pact?
Synopsis
Key Takeaways
- New postal agreement signed between India and Russia.
- Launch of International Tracked Packet Service.
- Cost-effective logistics for low-value consignments.
- Enhanced support for MSMEs and small businesses.
- Strengthened bilateral trade and cooperation.
On December 5, 2023, in New Delhi, India's Department of Posts collaborated with JSC Russia Post to formalize a bilateral agreement regarding the International Tracked Packet Service (ITPS). This agreement marks a crucial step in enhancing cross-border postal collaboration and supporting the increasing e-commerce trade between India and Russia.
The implementation of ITPS will establish a cost-efficient, trackable, and reliable logistics channel specifically designed for low-value shipments, which is vital for the worldwide e-commerce framework.
This service boasts features such as electronic advance data transmission, comprehensive tracking, and delivery confirmations, which collectively enhance transparency, security, and facilitate smoother customs clearance.
According to an official note, Russia is increasingly becoming a significant market for Indian products, including health and wellness items, clothing, jewelry, home decor, and various sectors driven by MSMEs.
With Russia Post providing preferential delivery prices under this agreement, India Post can extend this service to exporters at competitive rates, thus enhancing price competitiveness and market accessibility for Indian sellers.
To assist small businesses in reaching global markets, the Department of Posts, in partnership with the CBIC, has established 1,013 Dak Ghar Niryat Kendras (DNKs) nationwide.
A notable portion of postal exports comes from Tier-2 and Tier-3 cities, reflecting the growing involvement of small businesses and individual entrepreneurs in the global market.
The initiation of ITPS with Russia is poised to particularly advantage MSMEs, artisans, startups, and rural entrepreneurs, enabling them to market their products on Russian e-commerce platforms with competitive shipping rates and reliable delivery schedules.
This agreement underscores the mutual commitment of India and Russia to deepen bilateral trade, advance digital commerce, and enhance cooperation in postal and logistics services.