As India is the fastest growing economy, the vision of the country well reflects in its aim to achieve a $5 trillion economy by 2025. CEO of HashCash Consultants, Raj Chowdhury highlights the developmental reforms taking place and focuses on the need to implement blockchain technology and technological innovations across different industries to enhance the supply chain, and logistics sector, and boost growth.
India Adopts National Logistics Policy to Manage Transportation Costs
The Government of India adopted a National Logistics Policy to reduce high transportation costs. In the World Banks Logistics Performance Index, the country ranks 44th and has significantly improved over the past years. The country at present is taking measures to reduce its logistics costs from 13% to 14% of the country’s total GDP to 7% to 8% on par with the evolved countries. Logistics will help to develop the backbone of the country’s international trade, and the industry will grow at a CAGR of 10.5% till 2025. India needs to implement new upgrades to its technology to develop an efficient logistics sector powered by data-centric decision-making. Along with other technological innovations, Blockchain can be an important addition to the wheel to streamline the process, validate transactions, and remove intermediaries.
Blockchain pioneer and CEO of HashCash Consultants asserts, “The scenario for blockchain implementation is ideal in a nation like India. The country’s aim to bring logistical expenses to global benchmark levels, within the top 25 rankings by 2030 needs the actualization of technologies that increase operational efficiency through efficient cost-cutting and value addition.”
Adaptation of Blockchain Technology To Improve Supply Chain Sector
India is one of the largest democracies by population and has recognized the potential of blockchain technology to adopt a national policy framework for the rapid integration of the technology with the existing infrastructure. The national think tank for policy information, NITI-AAYOG has recommended the use of blockchain technology for supply chains (pharmaceuticals, fertilizers), verifying immunization records, land records, energy management, and others. The technology can make easy and quick delivery of economic products, increase traceability, and improve financial access and coordination between the stakeholders with real-time transparency.
“A decentralized blockchain ledger recording transactions in real-time safeguards data integrity while ensuring permissioned accessibility across the entire network. This makes blockchain a boon for the logistics industry- offering time-stamped transaction records, provenance, and tokenization of key parameters,’ concluded Chowdhury. He has previously highlighted the potential of blockchain technology in the supply chain for blood banks and sustainable energy management.
Blockchain technology can significantly improve operational efficiency in supply chain management. The technology provides a comprehensive and reliable audit trail recording real-time transactions to help businesses to utilize cost-cutting, and process optimization to leverage growth opportunities.