India is one of the world’s largest democracies and has recently overtaken China as the world’s most populous country. Recently, the International Monetary Fund (IMF) reported that the Indian economy is expected to grow by 5.9% in the current fiscal year, making it the fastest-growing economy in the world.
One of the major factors impacting the growth of the country is digital transformation across various government and private sectors. Blockchain technology further boosts the transformation through transparency and traceability. The technology has the potential to counter corruption, fraud, and bureaucracy.
Let’s see how blockchain technology is revolutionizing the Indian economy. Here are 10 sectors blockchain is revolutionizing rapidly:
- Finance and Banking
India is home to a massive unbanked population and still relies largely on the use of traditional banking services. Blockchain technology has the potential to significantly transform the scenario and enhance the finance and banking sector. It can make the financial system more inclusive by offering low-cost banking services. Small business owners can use the technology to obtain lending and other financial services without the requirement for a regular bank account.
The Reserve Bank of India (RBI), the central bank and regulatory body, is also exploring the financial use cases of blockchain. The RBI’s Central Bank Digital Currency is currently in the trial phase and has components based on blockchain technology. Regional banks are also joining blockchain networks to improve customer experience. Recently, in April 2023, Citi India completed its first blockchain-enabled Letter of Credit (LC) transaction on Contour for its client Cummins India Limited. The initiative is said to cut down the processing time by 90%.
- Healthcare
In the healthcare sector, blockchain can be used to preserve and exchange patient data through hospitals, diagnostic laboratories, and pharmacies. It can accurately identify severe mistakes and even dangerous ones in the medical field, thereby improving the performance, security, and transparency of sharing medical data in the healthcare system.
In 2021, the Government of Maharashtra’s Disaster Management Department partnered with DocChain.io, an emerging blockchain platform, to issue COVID-19 test certificates to people who tested negative for COVID-19. DocChain.io is a blockchain-secured document-issuing platform that empowers institutions with a permanent and tamper-proof infrastructure of trust.
- Education
The COVID-19 pandemic significantly impacted many sectors including education. The pandemic brought about a digital revolution in the sector. With no more lockdowns and restrictions, blended learning is gaining traction in the education landscape. With a large volume of data being churned in the sector, Blockchain helps transform data management. It can also help eliminate the duplication of degrees and certificates due to its decentralized nature.
Recently, in May 2023, the state government of Uttar Pradesh, along with its secondary education board, introduced crypto and drone technology in the syllabus for classes 9 to 12. Earlier in January 2023, the NITI Aayog introduced a blockchain module to help provide blockchain education to school students. Such initiatives are likely to bolster innovation and entrepreneurship in blockchain technology in the near future.
- Government
Several sensitive documents do rounds of government offices including birth certificates, passports, land titles, and licenses. Thus, it is necessary to maintain the integrity of government-issued documents. The immutable nature of blockchain technology does not allow unauthorized access to various documents. This, in turn, helps boost trust and confidence in the authenticity and accuracy of these documents.
In April 2023, the Government of India undertook a research project in Blockchain technology. The project is expected to help the blockchain technology evolve stack for end-to-end blockchain application development.
- Real Estate
Blockchain offers a revolutionary way to trade real estate. The technology can be integrated with trading platforms and online marketplaces to facilitate hassle-free and secure real estate transactions. Blockchain can be used for various real estate and rental property transactions. No intermediaries are involved in these transactions, which means big savings on commissions and fees charged by these intermediaries.
Last year, the state government of Maharashtra announced the use of distributed ledgers for the documentation of land property in the state. Adoption of blockchain technology in real estate helps improve trust amongst industry participants and reduce incidents of fraud.
- Retail and Commerce
Blockchain technology has the ability to change data ownership. It helps to restore data control to the user by allowing them to control the accessibility of their online information. Blockchain also helps regional and small platforms to compete with giant e-commerce platforms, especially when some of them are accused of eliminating the competition by copying products and rigging search results to promote their brands.
The government of India launched Open Network for Digital Commerce (ONDC), a blockchain-based open network, in 2021 to explore the potential of blockchain methodologies to bring domestic digital commerce under one umbrella. The pilot phase was launched in April 2022 in five cities- New Delhi, Bengaluru, Bhopal, Shillong, and Coimbatore. Major retail stores are integrating with ONDC to expand their customer base.
- Legal
In the legal sector, blockchain can be used to securely store and verify evidence in legal disputes. This makes it easier for legal professionals to resolve disputes and ensure the integrity of the evidence. It can also be utilized to track and verify intellectual properties, such as patents and trademarks. Blockchain can securely store and share legal records, such as court documents and transcripts.
Last year, the Firozabad Police reported the use of blockchain technology to launch a public grievance management system for citizens to register their complaints. The system will generate a token number once a complaint is registered. The token can be referred to for further inquiries on a complaint.
- Human Resources
Hiring is a tedious task. Blockchain can be used to eliminate the red tape associated with various processes such as candidate screening, confirming work records, and reviewing resumes. It has the potential to significantly reduce procurement duration, thereby revolutionizing talent acquisition.
- Procurement
In supply chain management, blockchain can be used to create and store purchase orders, including details about the items or services being purchased, delivery schedules, and payment terms. It can also be employed to manage the RFP process such as creating and sending RFPs, receiving and evaluating proposals, and awarding contracts. Many procurement companies across India are employing blockchain to ensure that every party in the procurement process is on the same page and relying on the same information.
- Agriculture
India is one of the largest agriculture-based countries worldwide. With growing population and decreasing arable land, it is critical to production in the agriculture sector. Blockchain-powered supply chain management can help attain transparency about the status of goods, leading to a healthier relationship between producers and consumers.
Conclusion
Blockchain-based document verification and other blockchain technologies have wide implications across many industries in India. The above-mentioned are some of the many sectors the technology can revolutionize rapidly.