Transforming India's Rural Economy: A New Era for Logistics and MSMEs

Finance Minister Nirmala Sitharaman announced plans to transform India into a major logistics hub with 1.5 lakh rural post offices, boosting the rural economy. A urea plant in Assam and enhanced MSME credit guarantee cover were also revealed, alongside support for the National Cooperative Development Corporation.

Finance Minister Nirmala Sitharaman unveiled ambitious plans to transform India into a leading logistics hub on Saturday, as she presented her eighth consecutive budget. Central to this strategy is the transformation of 1.5 lakh rural post offices into powerful public logistics entities, aimed at invigorating the rural economy.

Announcing further developmental efforts, Sitharaman revealed the setting up of a urea plant boasting a 12.7 lakh tonne capacity in Assam, promising to bolster agricultural productivity. Alongside these plans, she stated the intent to increase the investment and turnover limits to support economic growth.

Sitharaman emphasized the critical role of MSMEs, noting they contribute 45 percent of the nation's exports. To boost their economic contribution, the government will expand credit guarantee cover to ease cash flow issues. Additionally, she pledged support to the National Cooperative Development Corporation, facilitating greater financial assistance to rural sectors.

(With inputs from agencies.)