India’s policymakers are at risk of missing a major digital transformation. By conflating blockchain with only speculative crypto assets, they risk overlooking its deeper applications in governance, trade and logistics. With the global economy shifting rapidly, India needs to treat blockchain technology as infrastructure, not just financial innovation. To do so demands a clear policy strategy, capacity building, and focus on real-world use cases. The alternative is inertia — and a lost opportunity to boost transparency, efficiency and competitiveness across the economy.
The Union government’s National Strategy on Blockchain recognises blockchain as a “trusted digital platform” for citizen and business services. The document proposes a sandbox, national infrastructure and standards for blockchain adoption across sectors. Yet, in practice, deployments remain limited.
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Blockchain and governance
Blockchain has special relevance for governance because it tackles long-standing issues: siloed databases, opaque processes, high transaction costs, fraud and duplication. As one analysis notes, “blockchain presents unique possibilities” for improving ease of doing business and public-service delivery.
For example, blockchain-enabled welfare systems show a strong positive impact on trust and transparency in recent Indian research. These gains go beyond the hype around crypto, pointing directly to governance efficiency.
Blockchain governance in India
The dominant narrative in India is about regulating or suppressing cryptocurrencies. That regulatory posture is important — indeed, Reserve Bank of India (RBI) and the ministry of finance have tightened rules on virtual digital assets. But regulation of crypto should not equate to neglect of blockchain’s broader potential.
Governance use-cases extend well beyond digital coins. The public-sector ledger framework envisaged in India calls for decentralised ledger trust, provenance, secure data sharing and smart contracts. For instance, pilot applications include land records, identity verification and subsidy distribution. States such as Hyderabad are actively positioning themselves as blockchain hubs.
Unless the mindshift happens — treating blockchain as an infrastructure layer — India runs two risks. First, it will continue to resist crypto while missing productive application of ledger tech. Second, global players will leapfrog and capture value in services and platforms.
Blockchain trade logistics in India
Trade and logistics present arguably the largest commercial frontier for blockchain in India. The logistics industry is projected to grow to over $484 billion by 2029. But growth is constrained by paperwork, limited visibility, multiple intermediaries and inefficiencies. Blockchain offers end-to-end traceability, immutable records and reduced fraud risk.
Further, the blockchain-in-supply-chain market in India is expected to reach $781 million by 2033, up from $38 million in 2024. That implies a compound annual growth rate close to 40 %. But growth will follow policy clarity, platform interoperability and stakeholder onboarding.
Here, the risk is that policymakers treat blockchain as an exotic technology, or worse, only as a tool in the crypto-finance bubble. Instead, they should embed it in trade facilitation, logistics corridors, export-document chains and cross-border clearances. The result: quicker shipments, lower risk, stronger global competitiveness.
Crypto regulation and infrastructure development
There is a legitimate concern about cryptocurrencies and investor risks. But conflating crypto hype with blockchain utility in governance, trade and logistics is self-defeating. India’s regulatory regime for virtual digital assets is evolving. GLI At the same time, the national blockchain strategy advances an infrastructure agenda.
Policymakers must keep the twin tracks separate: one for regulation of speculative assets, and another for infrastructure and application of blockchain across public and private sectors. The former may require tighter controls. The latter demands openness, standards, sandboxing and ecosystem building. The technology is not about coins; it is about ledgers, trust and process redesign. For instance, our earlier piece on digital public infrastructure explained how digital delivery relies on underlying infrastructure. That logic applies to blockchain too.
India stands on the cusp of a blockchain-enabled leap — in governance, trade and logistics. But success hinges on recognising blockchain as infrastructure, not only as crypto. Policymakers must align: a clear national platform and standards; regulatory separation of speculative assets and infrastructure innovation; targeted deployment in high-impact sectors. The choice is simple: harness blockchain’s transformative potential now, or defer and watch others lead.