Modi Mandate 3.0: Future of Blockchain in India

This text discusses the potential use of blockchain technology in streamlining land records and university certificates in India, as well as ongoing efforts by local and state governments to incorporate blockchain into various systems. The GoI is also working on a “National Blockchain Framework” to build a national infrastructure and integrate it with other technologies like IoT and AI. However, there are challenges to widespread adoption such as regulatory frameworks, technological infrastructure, awareness and skill gaps, and interoperability between different blockchain platforms. If the Modi government secures another term, the future of blockchain technology in India looks promising due to the government’s proactive stance and comprehensive strategies. This could lead to improvements in public and private services, easier digitalization of intellectual property, and a clearer regulatory framework for digital assets like cryptocurrency.

Following India’s historic seven-phase general election, which is the world’s largest democracy, experts and exit polls indicate that Prime Minister Narendra Modi is expected to secure a significant victory with a strong mandate.

If Modi secures a third consecutive term as Prime Minister from 2014 to 2024, his win would mark a historic achievement as no other Indian leader has managed this feat. Regarding the impact of Modi’s victory on Blockchain technology in India, it is reasonable to anticipate that his administration may continue to promote its adoption due to various reasons:

Based on the World Economic Forum’s (WEF) projections, over 10% of global GDP will be managed through blockchain technology by the year 2024. Additionally, the earnings derived from this technological innovation are projected to exceed an astounding $3 trillion USD by the year 2034. India, being the most populous country, is actively exploring ways to integrate blockchain technology into both its public and private sectors.

As a researcher examining the relationship between India’s central bank and its stance on cryptocurrencies versus the government’s viewpoint on blockchain technology, I have observed that the Reserve Bank of India (RBI) has demonstrated a dismissive attitude towards Bitcoin and other digital currencies. In contrast, the GoI has expressed a more favorable perspective regarding the potential of blockchain technology to revolutionize governance.

In this report, we will shed light on the present state of blockchain implementation in India, exploring its benefits and prospects, as well as the obstacles preventing widespread use. We will draw insights from analysis reports and white papers issued by private financial consulting firms, alongside documents from NITI Aayog and MeitY, two key Indian government departments responsible for technology-related matters.

India’s Tryst with Blockchain

Although the concept of blockchain technology or decentralized distributed public ledger systems was introduced in 2009, it has gained significant attention only within the past five years. Following the Modi government’s victory in the 2019 elections, NITI Aayog, its premier policy think-tank, published a white paper titled “Blockchain: India Strategy” Part 1 in 2020 to showcase current initiatives and future plans related to blockchain technology.

As a crypto investor and follower of technological advancements, I’ve been keeping an eye on the Indian government’s implementation of blockchain technology since NITI Aayog announced it as a pilot project in four sectors back in 2019. These sectors include drug supply chains in the pharmaceutical industry, claim verification in fertilizer disbursement, verification of university certificates, and transfer of land records.

Blockchain in Pharma

To combat the issue of adulterated life-saving drugs and ensure authentic medicines reach patients from the manufacturer to retailer via wholesalers and local chemists, NITI Aayog initiated a trial with blockchain technology. Each product was registered with licenses and time stamps before being added to the digital ledger. Stakeholders were encouraged to monitor deliveries using a mobile app for enhanced transparency, efficiency, and dependability. This system brought about significant benefits as all parties involved could access real-time data on time stamps, ingredients, excipients, temperature, and cold storage availability during transportation.

Blockchain for Fertilizers

As a researcher studying the implementation of innovative technologies in government systems, I’d like to share my findings on NITI Aayog’s pilot project with the Department of Fertilizers (DoF) and Gujarat Narmada Valley Fertilizers and Chemicals (GNFC). In this endeavor, I discovered that DoF initiated a trial run of blockchain technology for facilitating fund disbursements to GNFC. The primary objective was to optimize the process, reduce costs, and enhance overall efficiency.

Blockchain in Land Records

As a researcher studying property rights in India, I’ve discovered that this intricate topic is filled with legal complexities, much like in many other countries. Notably, NITI Aayog identified the potential of blockchain technology to simplify land record management in Chandigarh union territory through a proof-of-concept (PoC) study. However, for extensive implementation, it’s essential to amend existing laws due to various pre-existent state and central regulations that govern property rights.

Blockchain in University Certificates

As a researcher, I’ve been exploring ways to enhance the authenticity and security of university certificates in collaboration with NITI Aayog, Indian School of Business (ISB), and Bitgram. Our goal is to reduce the possibilities of certificate fraud through the development of a decentralized ledger system. In this context, I’ve been involved in creating a prototype called ‘SuperCert’. This innovative solution involves generating a hashed version of each student’s certificate, complete with an original timestamp, which ensures that any attempts at tampering are easily detected and prevented.

Blockchain Use at Decentralized Level in India

As a researcher exploring the integration of emerging technologies into governance structures, I’ve discovered that an increasing number of local and state administrations are embracing blockchain technology. Specifically, approximately half of the U.S. states are currently engaged in blockchain-related projects.

As a crypto investor, I’ve been following the innovative use of technology in managing records and transactions. In West Bengal, for instance, the New Town Kolkata Development Authority has implemented NFTs (Non-Fungible Tokens) to oversee land ownership records. By doing so, they’ve ensured transparency and eliminated the need for laborious manual paperwork. Similarly, municipal corporations in Durgapur and Bankura districts have developed a blockchain platform to issue legal documents like birth certificates. This cutting-edge solution streamlines the process, making it more efficient and trustworthy.

As a researcher studying digital identification systems in India, I’ve come across two notable initiatives: Tamil Nadu’s “Nambikkai Inaiyam” and Karnataka’s “Unified Land Management System.” Both projects aim to simplify the management of important documents for their respective citizens. With Nambikkai Inaiyam, each Tamil Nadu resident will receive a unique state ID, which consolidates various documents into a single, convenient digital wallet. Accessible via the e-Pettagam App, this innovative solution streamlines the process of carrying and organizing multiple documents. Similarly, Karnataka’s Unified Land Management System offers a unified platform where citizens can manage their land records digitally, making transactions and updates more efficient.

As a researcher studying technological innovations in governance, I’ve come across an interesting development in Uttar Pradesh. The local government has collaborated with Polygon to establish the “Firozabad Public Grievance Management System.” This system is an online platform where citizens can submit their complaints using blockchain technology for enhanced security and transparency. By employing this cutting-edge technology, officials are prevented from tampering with records, ensuring a fair and honest process for all involved.

Future Roadmap for Blockchain in India

The Government of India (GoI) is presently developing a “National Blockchain Initiative” to establish a domestic blockchain infrastructure by 2027. This initiative seeks to generate homegrown blockchain technology with international applicability, tagged as “Made in India.” The infrastructure will merge blockchain technology with other advanced technologies such as the Internet of Things (IoT), cloud computing, and Artificial Intelligence, collectively known as the “BICA Tech Stack.”

The Reserve Bank of India has taken a cautious stance towards cryptocurrencies but is simultaneously working on launching its own digital currency, referred to as the digital rupee. This move aims to minimize the usage of cash in its physical form and enhance online payment structures. At the same time, it will safeguard the public from potential risks associated with private virtual currencies.

Possible Challenges to Widespread Adoption of Blockchain Technology in India

Regulatory and Legal Framework

The absence of a defined regulatory structure creates a major obstacle. Extensive regulations are necessary to tackle concerns surrounding data protection, security, and the legal acceptance of blockchain deals. Additionally, collaboration between state and central authorities is crucial for the wider adoption of blockchain tech in India.

Technological and Infrastructure Barriers

As a crypto investor, I’ve come to realize that scaling up blockchain technology comes with a hefty price tag in terms of infrastructure investments and technological advancements. Unfortunately, the existing digital infrastructure in various regions of India might not be ready to accommodate wider blockchain adoption.

Awareness and Skill Gaps

It’s essential that we enhance the knowledge and comprehension of blockchain technology amongst various parties such as government representatives, corporations, and the populace. Furthermore, the scarcity of proficient experts in this field may impede its implementation.

Interoperability and Standards

As a crypto investor, I recognize the importance of seamless communication and collaboration between various blockchain platforms to drive wider acceptance and use of this groundbreaking technology. Fortunately, several innovative Indian startups are actively addressing this challenge by focusing on interoperability and setting industry-wide standards.

Future of Blockchain Technology in India under Modi’s Continued Leadership

As a crypto investor, I’m excited about the prospect of India continuing with a Modi-led government for a third term. Their active approach and well-planned strategies towards blockchain technology suggest a deep-rooted intent to utilize it for the country’s progress. This bodes well for the future of blockchain in India.

Through this approach, the administration has the potential to enhance both public and private services that are presently grappling with challenges related to transparency and corrupt practices. Furthermore, implementing DLT technology can streamline the process of digitizing intellectual property.

To fully unlock the capabilities of blockchain technology, it’s essential that we persistently invest in improving digital foundations, crafting effective regulations, and fostering necessary skills. This approach will enable us to address existing hurdles and maximize the benefits of this groundbreaking innovation.

I, as an analyst, believe that India could greatly benefit from a stronger and more defined regulatory structure for digital assets such as cryptocurrencies during the next tenure of the Modi administration. With numerous crypto-related innovations encountering operational challenges within the country, a clear-cut and dedicated regulatory framework would serve as a vital stepping stone for these businesses to expand their operations.

2024-06-03 15:01