Increasingly, the Indian government sees blockchain as an effective tool for enhancing services and streamlining processes. Its most recent foray was into domestic commerce. ECTS, a blockchain-based electronic cargo tracking system, was launched as a pilot project by India’s central board of indirect taxes and customs under the country’s finance ministry on October 15.
Container monitoring and safe documentation are the goals of this project. Approximately 20% of Delhi Customs’ overall tax earnings are generated at the Tughlakabad Import Commissionerate’s Inland Container Depot (ICD). A senior government official stated that if the trial runs go well, the initiative could be rolled out across India based on factors such as cost savings, time saved, and compliance.
As per the Airports Authority of India, cargo traffic at India’s airports was 264,509 tonnes in August of this year (pdf). The Indian Ports Association reported that in the prior year’s period, the country’s major ports handled 57.59 million tonnes.
According to the source, “the test run is being done in Delhi…for liquor.” Quartz reported. “Liquor is a delicate commodity that is often traded. Customs, importers, and warehouse owners were all consulted in the process.”
The official went on to say that because the technology makes record-keeping and management easier, it has piqued the interest of all parties. As all details are recorded digitally, analysts believe blockchain technology will guarantee safe and easy paperwork among network members.
A tamper-proof blockchain may record all transactions relating to consignment flow with a date and a distinct cryptographic signature. Bengaluru-based innovative technology advocate Sharat Chandra stated. To reduce fraud and income leaks, “permission access” makes it possible to access data at any moment during transportation.
Paper-based systems are unsafe and also create a lot of red tape because of the many permissions needed. The blockchain nodes of each party should be located on a decentralized server, since this would increase security. As a digital ledger, a blockchain node documents all cryptocurrency activities and makes that information accessible to anybody with access to a linked gadget.
Each bundle of network dealings, which are referred to as blocks, is verified by it. The finance ministry and the Asian Development Bank are working together on an initiative at the ICD Tughlakabad Import Commissionerate.
Indian Banks’ Blockchain Infrastructure Co, a group of 15 Indian banks, was formed earlier this year to boost blockchain-enabled initiatives. In order to handle letters of credit, GST invoices, and e-way bills, Infosys’s blockchain-based technology is expected to be used.
As per the International Chamber of Commerce’s 2020 Global Commerce Survey, 54% of banks across the world are focusing on researching new technologies, digital trade, and online trade platforms to ensure short-term development.
In terms of eliminating the usage of paper, the study stated, “advancement is being made towards digitization, although document validation remains a noteworthy slacker.”
