A political think tank of the Indian government called NITI Aayog has published its draft for a national blockchain policy entitled “Blockchain – The Strategy of India”. It explains different application scenarios for Blockchain in India as well as some conclusions from ongoing pilot projects.
NITI Aayog was founded to achieve goals related to sustainable development. It promotes the involvement of Indian governments in the economic policy decision-making process.
Strategy includes two-part plan
The strategy document is aimed at stakeholders, such as government, business leaders and citizens. It aims to demystify the concepts surrounding block chain technology. The aim is to develop a concrete national action plan for block chain technology.
The document will be published in two different parts. The first part deals with basic concepts, trust systems, the economic potential of Smart Contracts and Blockchain, simple business transactions and various current application scenarios. Part two will be published in the coming weeks. It mainly deals with different recommendations for the use of blockchain technology in India.
The think tank explains that the general characteristics of distributed ledger technology allow a paradigm shift in India’s political economy. According to the Think Tank, the current commitment of government agencies should be reconsidered:
“The government should pay more attention to decentralized networks. Peer-to-peer transactions can create more socio-economic value there. If a government organization is there just to keep accounts and doesn’t add value, then we should rethink the role of government.”
For example, the document states that a DLT system could be used for land and real estate transactions. This would eliminate the need for a government organization to keep records.
Pilot projects provide valuable insights
NITI Aayog has sought proof of concept in four areas to better understand potential hurdles in the implementation of block chain technology. The pilot projects involve tracking and monitoring drugs in the pharmaceutical supply chain, reviewing and approving applications for fertilizer subsidies, checking university certificates and transferring land registers.
However, according to NITI Aayog, in order to be able to use the blockchain on a large scale, the private and public sectors will have to change some legal and regulatory things.
In the second part of the strategy, which is to be published in the coming weeks, the focus is on recommendations to make India a living block-chain ecosystem. These include regulatory and political considerations. This should create a national infrastructure for political solutions and an opportunity for government agencies to introduce the blockchain technology.
The NITI Aayog document is the second such strategy published by a government agency in recent weeks. Earlier this month, Cointelegraph reported that India’s National Institute for Smart Governance, a non-profit public body of the Indian government, has published a draft of the country’s national block chain strategy.