The current sentiment in India is not about the existing infrastructure failing. It’s more focused on how the technology sector is augmenting and improving the functioning of institutions in which we previously placed our confidence, particularly those in the realm of government.
The private sector has been the driving force, and the private sector’s assistance to the government is not limited to just capital investment. Rather than relying on elected officials to answer the pressing questions raised by the Covid-19 pandemic, which brought with it a slew of new difficulties, including strains on global healthcare systems and unequal distribution of available resources, the private sector stepped in to provide the answers. The COVID numbers continued to climb in India, putting a strain on an already stressed healthcare system. The private sector assisted the state and national governments in managing this problem.
This instance is one of the many examples that back the fact that “India’s dynamism” is not being fueled by government policies but rather by a burgeoning community of technologists who are tackling challenges of national importance. We may expect to see more answers to India’s growing problems coming from engineers, technologists, and specifically, startup founders, as technology ceases to be a “sector” and instead becomes a means of acceleration that affects every sector of the economy and every part of society. Eventually, law and technology will have to become friends.
In recent years, startups, especially in the IT sector, have gotten more attention in India and throughout the world. Increasingly, they are becoming recognized as major engines of growth and employment creation. As a result of their innovative and scalable technologies, startups may be vehicles for social and economic change and progress.
Over the previous two decades, India’s startup scene has changed dramatically. In the early 2000s, a small number of investors and support organizations like incubators and accelerators helped some firms get off the ground. However, the ecosystem as a whole was still in its infancy. In the late 2000s and the last ten years, the number of startups grew rapidly, and greater assistance was made accessible in all aspects. As India’s principal startup hub, Bangalore has taken the lead, but Mumbai and the NCR, as well as smaller towns, have also seen a substantial amount of startup activity.
Those who rail against the IT sector claim that software only affects the digital realm and that we are squandering important human resources by disregarding the tangible world. Even the most cynical of detractors are overlooking this current drive to the physical sector, which is reshaping the real world with software at its core.
Blockchain, Crypto and Indian Dynamism
The 21st century has been dubbed “Information Technology Driven,” and India is at the center of world attention and regarded as a knowledge powerhouse. Software and hardware products are all included in the IT sector, as are IT services and IT-enabled services (ITES). Organizations in today’s competitive world need IT-based services to boost productivity, the convenience of doing business, and develop effectively and affordably. In addition to boosting the economy, IT has improved the country’s governance by making it more transparent and approachable to the general public.
When discussing startups and emerging industries in India, the emerging Indian blockchain and cryptocurrency economy is a major talking point, and the sector itself is one of the biggest innovations within the global IT sector. The blockchain industry stands at a sweet spot in the sense that is proving to be a solution to a number of challenges being faced by our nation while also uplifting its economy with fresh investments and even becoming a major source of employment for freshers and professionals alike.
Is blockchain technology going to have a significant impact on our daily lives? The entire potential of this powerful, decentralized technology isn’t going to be exposed in the distant future. According to the World Economic Forum, more than 10% of global GDP is expected to be kept on blockchain systems by 2025. And that’s all there is to it.
Experts think that blockchain technology has the potential to upend the global economy (as well as practically every other industry) by removing the need for middlemen. It doesn’t matter if you’re talking about fiat money or the BFSI sector; distributed finance (DeFi) has already had an influence on both.
According to a market research organization’s reports, the worldwide blockchain technology market is growing at a CAGR of 66%. It’s expected to grow to $172.9 billion by 2028, up from just $3 billion in 2020, thanks in large part to the occurrence of a trigger. Global commerce slowed after the financial crisis of 2008 because of a lack of openness and interoperability. The World Bank predicts that blockchain will be the driving force behind an increase in worldwide demand for payment systems that are both transparent and secure.
Over 60 percent of Indian states have already adopted blockchain and crypto tech, and there are now over 10 crore retail investors in the sector. Compared to $37 million in 2017, the total risk investing in domestic crypto and blockchain businesses surged to $587.16 million as of October 17, 2021, the highest figure ever, according to industry tracker Tracxn.
But there’s more to this story, too. D2C market, supply chain management, healthcare, education, cloud computing, stock trading, real estate, and most crucially, government services are all likely to be disrupted by blockchain technology in the future.
Until now, many industries have not grasped this notion. Blockchain technology acceptance and growth have been slowed by a lack of basic information and comprehension. Many people believe that blockchain would replace present systems, which is not the case. Blockchain, in contrast to other technologies, has the ability to redesign already existing processes in order to unleash new sources of efficiency and value for people and other stakeholders. Since the notion is so new, India has a lot of room for growth as long as it can address the obstacles effectively.
Some of you may still be questioning why we should even consider expanding and exploring this topic. There are a number of additional industries and issues that need attention. The current pandemic has compounded some of these challenges, making it more difficult to adopt this new technology. So what’s the point?
Digitization is one of the many factors that are pushing the use of blockchain in India. To enable private sector applications such as Aadhaar, UPI, e-Sign, and Digilocker, and digitally-enabled tax governance networks like GSTN or digitally enabled health coverage such as Pradhan Mantri Jan Arogya Yojana, India has successfully built foundational digital infrastructure over the last decade (PM-JAY).
We already have a solid foundation for experimenting with this technology in several industries. The government in India also confronts a number of issues due to the sheer size, diversity, and complexity of the procedures involved in the delivery of a wide range of public services. It is possible to handle governance concerns in a novel way using blockchain technology. Businesses in India can significantly improve the “Ease of Doing Business” because of the “self-regulation” they are allowed to practice, which reduces their reliance on burdensome regulatory scrutiny and compliance. The openness, decentralization, and accountability qualities of the blockchain will assist to empower citizens and make life easier for everyone.
Better contract management and procurement increased accountability and quality control in the supply chain, and the decentralization of decision-making power are a few other advantages that would have a direct impact on the economy. To put it simply, blockchain has the potential to reshape India’s agriculture sector by improving the utility of eNAM and generating an audit trail of every farmer’s product.
Challenges along the way
India is well-known for the large number of highly skilled software developers living and working in the country. While blockchain has great promise, the government has lagged behind in realizing that a skilled workforce is needed for both domestic and global use cases. Only 0.25 percent of India’s software talent, according to a survey by Bengaluru-based employment solutions startup Belong, is blockchain-ready.
However, the government is working hard to fill the deficit in its workforce. Kerala Blockchain Academy, Indian Institute of Blockchain Technology, Hyderabad, International Institute of Information Technology, Bangalore, Amity University, IIM Calcutta, IIT Bombay, and more are among the leading institutions offering certifications and post-graduate diploma courses in blockchain technology.
Intriguingly, these prestigious universities have teamed up with blockchain-based education businesses like UpGrad, TalentSprint, Great Learning, and others to provide these courses. However, only the Kerala Blockchain Academy provides R&D facilities for blockchain technology. None of the other institutions do.
As things are, India will have to step up its educational efforts to keep up with countries like the United States and China, who are already setting the bar high. In order to establish a blockchain talent pool and take the lead in the creative and competitive distributed ledger technology (DLT) market, India has to make technical knowledge and education broadly accessible at all levels.
The government must work closely with all levels of management to build technologies for a digital blockchain economy and promote the technology’s latent potential. If the government and organizations adopt the blockchain deployment tools, India’s current economic crisis and disrupted supply chain may be reconstructed. The future of digital transactions in India may be shaped by blockchain technology, which has the potential to alter the FinTech environment. India stands to gain much from the adoption of blockchain technology.
The bottom line, I believe, is that Indian dynamism is for those who want to build. It is the conviction that the principles upon which our country was built are true and deserving of preservation. Dynamism is also a sensation: the sense of growth, movement, momentum, and possibility that makes India the nation people want to live in, immigrate to and establish a life, profession, or business in, and blockchain fits perfectly in this regard.Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.