Lack of quality resources and policy is hindering the development of blockchain ecosystem in India, say industry players.
Blockchain has become the buzz word with many sectors adopting it to ensure secure transactions. For instance, recently Telecom Regulatory of India announced that it would use blockchain technology to curb pesky calls. Banks too are adapting blockchain technology for services such as crossborder remittances. However, there is a lot more that needs to be done to keep up with the pace at which the technology is growing, say industry players.
According to a recent research report, Indian blockchain technology market is projected to grow at a CAGR of 58 per cent between 2018 and 2024. The report said this would be dependent on increasing growth of digital payment solution such as digital wallets and Unified Payment Interface (UPI) that is projected $500 billion by 2020 as compared to around $50 billion in 2017. The report said that it would give the desired push for the integration of blockchain technology for secured transactions.
Fintech professional Abhishant Pant agrees that while the potential is huge, action should start from State governments by giving startups opportunity. There are about 700 fintech start-ups in India, of which 40 of them are in the blockchain space. However, most of them are working for overseas clients due to lack of growth prospects here. This has to change, Pant said.
For instance, Telangana government has launched Blockchain District in partnership with Tech Mahindra. “What we need is more collaboration between government agencies and developers. The government can give us problem statements and enabling framework so that we can make it happen,” Pant said.
Lack of ecosystem
Navin Gupta, Country Head, Ripple India, a company in the cross-border remittance space, who was in New Delhi recently told BusinessLine that another challenge is that India lacks a developer ecosystem.
“This needs to develop as only when the ecosystem grow the market will grow,” he said.
Ripple recently launched a University Blockchain Initiative at an investment of $50 million to collaborate with universities.
In India the company is working with IIT-Bombay and International Institute of Information Technology, Hyderabad to develop courses for students at the graduate level.
Gupta said the company is also looking at investing in a global development centre in India in the future. But it all depends on the how fast the ecosystem grows, he added.