Indian state governments are implementing blockchain technology across the country to improve how they deliver services to citizens. About half the states have launched such initiatives. Telangana and
Indian state governments are implementing blockchain technology across the country to improve how they deliver services to citizens. About half the states have launched such initiatives. Telangana and Andhra Pradesh are leading the way, according to research that NASSCOM and Avasant released in February.
The India Blockchain Report 2019 documented more than 40 blockchain projects underway in India's public sector. Most remain in early stages: 92 percent sit in proof-of-concept or pilot phases, while 8 percent have reached production. State governments are recruiting startups and specialized vendors to participate in these initiatives.
Collaborations between state governments and private firms are powering blockchain expansion. Andhra Pradesh has paired with Zebi to build blockchain systems for land registry. In West Bengal, the municipal corporations of Bankura and Durgapur hired Lynked.World, a Netherlands-based company, to develop a blockchain platform for birth certificate issuance. Assam contracted with Nucleus Vision to deploy blockchain solutions for governance processes and citizen-facing applications.
The public sector is concentrating on four main use cases: land registry, farm insurance, digital certificates, and e-governance.
Private companies are pursuing blockchain across every major industry. Banking and financial services lead in adoption, though healthcare, retail, and logistics are catching up. Corporations are testing blockchain for trade finance, record keeping, supply chain management, anti-counterfeiting measures, peer-to-peer insurance, KYC processes, cross-border payments, asset tracking, food distribution, drug provenance, health records, intellectual property management, and fraud detection.
India's blockchain ecosystem has grown, but it trails the global sector. Blockchain startups worldwide have raised $5.6 billion to date; India captured just 0.2 percent of that sum. Indian startups comprise 2 percent of the global blockchain startup population.
To fuel further growth, the India Blockchain Report recommends that policymakers establish regulatory clarity, design favorable government procurement policies, create a blockchain working group, and establish a regulatory sandbox to test new products.
"India needs to act fast and work consultatively with the key stakeholders in the crypto/blockchain community and provide regulatory certainty and clarity around blockchain technology (specifically around cryptocurrencies and digital tokens)," the report stated. "A blockchain working group (similar to the Dutch Blockchain Coalition) or a self-regulatory body (similar to the one in Japan) can help drive the development of regulations or standards required for the growth of the overall ecosystem in India. A blockchain regulatory sandbox could also help drive product innovation in the country and also signal positive intent to the blockchain startup/developer community, while protecting investor and consumer interests."
