No doubt, India is the fastest-growing economy worldwide. According to stats India has achieved 7th position in global GDP rankings. And yes, saying this won’t be wrong, India is marginally just following the Uk and France, says world bank data.
Now here we explain to you how Blockchain can be the backbone of the Indian Economy and also learn the revolutionary impact of Blockchain in the banking sector. Keep reading!
Blockchain is seeing a great deal of traction in India majorly in Banking, Insurance,
A lot of Indian players have tested usage of Blockchain within the areas of Trade Finance, Cross- border Payments, Bill Discounting, Supply chain financing, Loyalty and Digital Identity areas. Some of the Indian banks, business corporations, and one stock exchange are among the forerunners for exploring Blockchain in India.
Blockchain Use cases in India
- Trade Finance: A private sector bank in India and a leading banking group in the Middle East successfully executed transactions in international trade finance and remittance using blockchain.
- Supply chain financing –An Indian conglomerate has designed a cloud-based application to remodel supplier-to-manufacturer trade finance transactions through a
permissioneddistributed ledger. A lighting instrumentality manufacturer in India experimented with Blockchain to scale back the cycle time of the BillDiscounting method for paying its suppliers from five days to nearly period.
- E-KYC Document Management: A leading stock market exchange in India is exploring blockchain for the management of KYC documents in collaboration with some of the leading banks in India.
- Cross-border Payments: Stellar has partnered with four monetary establishments to change affordable world cash transfers to the Philippines and cross border payments to and from India, Europe, Kenya, Ghana, and Nigeria.
Two of the private sector banks in India are put together testing Blockchain transactions,
Advantages of Blockchain in the Indian Economy
- Cost-Cutting: A blockchain an enormous range of intermediaries regarding value. For example, the State Bank of India (SBI) approximates a reduction of 7% with the adoption of the blockchain and 15% cost reduction in network and storage requirements.
- Speed & Mapping: A blockchain group action, that involves any intermediaries would profit the blockchain. Take for instance the case of a supply chain. A supply chain mechanism is taken into account because it goes through numerous stages of supply. You are not tuned in to whether or not the merchandise has extremely passed onto every stage. However, with the employment of a blockchain, every step of the supply chain can be mapped.
- Ecosystem: Whereas the adoption of the blockchain continues to be in its budding stage, most analysts believe that banks can begin embedding blockchain solutions in their entire scheme. Its adoption by a variety of giant companies illustrates a bigger vision of Digital India and therefore the Government’s efforts for conversion. The country has witnessed a dramatic increase in Bitcoin adoption by the financial organization and can thereby facilitate within the growing Indian Bitcoin community.
Blockchain has the potential to create processes additional democratic, secure, clear and efficient. The immutability of a Blockchain makes it nearly not possible for changes to be created once established, which increases confidence in data integrity and reduces opportunities for fraud.
Streamlining the cross-border payments, while the traditional process takes up to three business days in transferring funds across borders, Blockchain expedites the same process within 20 seconds, thanks to its decentralized aspect. Not only the economy but the Blockchain is also now the fastest-growing skill set demanded on job sites, with job growth rates at 2,000-6,000 percent and salaries for Blockchain developers 50-100 percent higher than regular developer jobs, therefore, creating a big contribution towards India’s GDP.
With the introduction of blockchain in the Indian Economy, the operations have become pretty safe and streamlined, transactions have become safe and records are easily accessible. In case, you are looking to understand blockchain’s implications in your business in more detail, drop us an email on [email protected] or schedule a free consultation with our team of blockchain experts who can guide you through the blockchain implementation in a specific use case.