Uditi Saraf

Blockchain is a decentralised ledger system that enables secure, transparent and tamper-resistant record-keeping, across multiple participants. Its governance reform importance in India lies in enhancing transparency, accountability, and operational efficiency in public systems, addressing trust deficits inherent in traditional centralized governance. Blockchain’s immutable and distributed nature can substantially improve public sector service delivery and citizen engagement. EVOLUTION OF BLOCKCHAIN IN INDIA India’s blockchain journey began with awareness and early adoption phases, propelled forward by government champions like NITI Aayog and the Ministry of Electronics and Information Technology (MeitY). Key milestones include the launch of the National Blockchain Framework (NBF) in 2024, which provides a unified blockchain infrastructure (Vishvasya Blockchain Stack) hosted across NIC data centers. States such as Telangana and Andhra Pradesh initiated blockchain projects for land registry digitization and public service improvements, with Maharashtra pioneering blockchain sandbox environments for governance experimentation. APPLICATIONS OF BLOCKCHAIN IN INDIAN GOVERNANCE While looking at the Indian scenario, blockchain operates in a typically vast expanse of functions. As it is considered a very reliable, tamper-proof, transparent way of storage, it is used to carry big data of citizen and government-related records; such as land and property, citizen identity records i.e., certificates, credentials, welfare schemes (subsidies, cash aid, social insurance etc.). This technology is now being taken up to uphold judicial integrity to ensure immutable evidence chains, improving effectiveness of the judicial system. Most importantly, it has proved as a great medium to accelerate financial market integrations : RBI pilots for Central Bank Digital Currency (CBDC) and financial tokenization enhance secure, efficient financial transactions. BENEFITS AND POTENTIAL OPPORTUNITIES Blockchain’s inherent transparency and immutability make it a powerful tool for building trust and accountability in public governance. By securing data against tampering and enabling decentralized validation, it reduces fraud, corruption, and bureaucratic delays. Smart contracts can automate processes, cut administrative costs, and ensure faster service delivery, while transparent ledgers strengthen auditability and fiscal oversight. In areas like welfare disbursement and procurement, blockchain ensures that resources reach their rightful recipients without leakages. Most importantly, by giving citizens access to verifiable records, it promotes participatory governance and reinforces public confidence in state institutions—marking a decisive shift toward efficient, inclusive, and technology-driven administration.  CHALLENGES AND LIMITATIONS Legal and regulatory ambiguity continues to hinder the large-scale adoption of blockchain in Indian governance, as the country still lacks a dedicated legal framework to govern its use. Data privacy concerns add another layer of complexity, especially with the impending enforcement of personal data protection laws such as India’s Personal Data Protection (PDP) Bill, which demand stringent safeguards for citizens’ information. On the technological front, issues of scalability and interoperability among diverse blockchain systems remain unresolved, making seamless integration across departments difficult. Moreover, institutional inertia, limited technical expertise, and capacity gaps within government bodies often delay adoption. High infrastructure costs, coupled with uneven digital readiness and the risk of excluding less-connected populations, further challenge the vision of inclusive, blockchain-enabled governance in India. RECENT INITIATIVES AND CASE STUDIES Andhra Pradesh and Telangana have taken the lead in adopting blockchain technology for land record management, setting benchmarks for transparent and tamper-proof property registries. Maharashtra has followed suit with its innovative LegitDoc platform, which issues blockchain-verified educational certificates to curb document forgery and streamline verification processes. Several Smart City initiatives across the country are also integrating blockchain solutions to enhance data security, ensure reliable information flow, and strengthen urban governance frameworks. Meanwhile, the Reserve Bank of India’s ongoing pilots on tokenization and Central Bank Digital Currency (CBDC) exploration highlight the growing recognition of blockchain’s potential in modernizing financial governance and reinforcing trust in public digital infrastructure. IMPLICATIONS FOR PUBLIC FINANCE AND ADMINISTRATION Blockchain’s integration into India’s governance framework holds transformative potential for public finance management. By enabling real-time tracking of government expenditures, subsidies, and welfare disbursements, it enhances fiscal transparency and minimizes leakages. Immutable transaction records ensure better audit trails, while smart contracts can automate benefit releases and procurement payments, reducing delays and corruption. Beyond efficiency, blockchain-driven analytics can help policymakers design more targeted and evidence-based fiscal policies. Furthermore, its transparent and traceable systems promote citizen trust in public institutions and encourage participatory governance—ushering in an era of accountable and data-driven public administration. COMPARATIVE PERSPECTIVE Globally, nations like Estonia, the UAE, and Singapore have demonstrated the transformative power of blockchain in public governance. Estonia’s e-Governance system leverages blockchain to secure digital identities and ensure transparent access to government data. The UAE has integrated blockchain into more than 50% of its federal operations, enhancing service delivery and interdepartmental coordination. Singapore, meanwhile, has focused on regulatory sandboxes and cross-sector collaboration to foster innovation responsibly. India can draw from these global experiences by strengthening its legal frameworks, establishing interoperability standards, and nurturing public–private partnerships that encourage innovation while maintaining oversight. Emphasizing citizen-centric services and ensuring inclusive digital access will be essential for India to replicate these global successes on its own scale. THE WAY FORWARD To fully harness blockchain’s potential, India must adopt a comprehensive and forward-looking approach that balances technological innovation with regulatory clarity. Formulating dedicated blockchain legislation, aligned with data protection norms, will provide the legal certainty necessary for large-scale implementation. Integrating blockchain with India’s Digital Public Infrastructure (DPI)—including Aadhaar, DigiLocker, and UPI—can create a cohesive ecosystem that enhances transparency and service delivery. Encouraging collaboration between government agencies, private enterprises, and academic institutions will accelerate innovation and capacity building. Additionally, establishing national interoperability standards and ensuring equitable digital access across regions will be vital for scalability. By combining regulatory foresight with inclusive technological adoption, India can position blockchain as a cornerstone of next-generation governance. CONCLUSION Blockchain offers transformative potential to make Indian governance more transparent, efficient, and citizen-centric. While challenges remain in regulation, privacy, and technology, ongoing government initiatives and a strategic future roadmap position India to harness blockchain’s benefits in public governance and administration sustainably.