Where Blockchain is used in India?


When we talk about blockchain, we think of the concept of a big ledger on the internet. Ledgers are important in every financial transaction. Even if the money is transferred domestically, it must still pass through intermediaries so that the entries are correct. This causes friction and delays, and increases costs. To solve this problem, blockchain technology could be an ideal solution. A simple example is the certification of organic produce.

In India, the use of blockchain technology is becoming more common in the finance and insurance sectors. The government is actively promoting the technology. However, the main issue is that the Indian government is not yet ready to recognize cryptocurrencies as legal tender. This has limited the use of cryptocurrencies in the financial sector, including money transfers and cross-border remittances. However, allowing the use of cryptocurrencies would have been a huge step towards the creation of “Digital India.”

While most countries are cautious about blockchain technology, the Indian government has recently warmed to the concept. Its latest experiment with blockchain has been in the domestic trade sector. The central board of indirect taxes and customs, the finance ministry, has begun a pilot electronic cargo tracking system project to secure documentation and GPS-based tracking of containers. The test run is being carried out at the Tughlakabad Import Commissionerate, which accounts for 20% of the country’s total tax revenue.

In addition to the financial sector, the use of blockchain technology is also transforming the governance sector. While India has successfully built a foundational digital infrastructure that enables private sector applications, digital tax governance networks, and health coverage, it still faces many challenges related to governance. While blockchain has the potential to improve governance in India, many sectors have not fully understood the possibilities it offers. These challenges can be addressed by adopting blockchain technology, which has the potential to transform the Indian economy.

In India, the banking and insurance sectors have the highest demand for blockchain solutions. The public sector is also beginning to use blockchain in these industries. The Indian government is not yet ready to adopt blockchain in the financial sector, but it is already exploring its potential. While blockchain is a promising technology, it is still in its infancy. In other geographies, it is just a few years away from being fully operational in India.

The public sector has also begun experimenting with blockchain technology in India. The latest experiment has taken place in the domestic market. The finance ministry, which oversees indirect taxes, has partnered with the central board of indirect taxes and customs to launch a pilot electronic cargo tracking system in the country. It will help to ensure secure documentation and GPS-based tracking of containers. The pilot will be the first in India. It is not just banks that are making use of blockchain technology.

The public sector in India is already experimenting with blockchain technology. The government has begun to adopt blockchain technology for various business processes. The central board of indirect taxes and customs, which oversees the trade of goods, has launched a pilot project aimed at GPS-based tracking of containers. The test is currently being conducted in the Tughlakabad Import Commissionerate, which accounts for 20 percent of the country’s tax revenues.

Among the sectors that are using blockchain in India are banks, insurance companies, and the public sector. The banking industry has been the most enthusiastic about blockchain technology, and government agencies are increasingly adopting it. The public sector is also embracing the technology. The NASSCOM Avasant India Blockchain Report 2019 reveals that the government has embraced the technology and is actively using it in various industries. It also highlights the benefits of the technology.

While the public sector is slowly warming up to the idea of blockchain, the government is still testing its potential in domestic trade. The finance ministry has recently launched a pilot project to implement the technology into the import and export process in the country. The pilot is being conducted in the Tughlakabad Import Commissionerate, which accounts for about 20% of the country’s total tax revenues. If this works well, it could be a game-changer for many industries.

Call Now