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Tuesday, July 16, 2024

FICCI Lists Pro-Blockchain Suggestions Ahead of Upcoming Union Budget: Details

The Indian government is set to present the union budget for the fiscal year of 2024-2025 on July 23. Ahead of the upcoming budget announcement, Federation of Indian Chambers of Commerce and Industry (FICCI), India's non-government trade and commerce body, has extended a proposal to create a blockchain portal that will unify all trading operations across India, while adhering to legal compliances. The Indian government has in the past acknowledged the potential of blockchain technology across sectors, including e-governance, healthcare, and finance among others.

In a post on X, FICCI published its budget suggestion for a single blockchain-based portal for all trade-related compliances. The industry body believes that such a portal will link shipping lines, logistics providers, banks, and customs with each other – providing members of India's commerce and trade sector one dashboard to simplify cross-platform connectivity and internal communication.

The portal, as per FICCI, could also bring more ease to the exporter community to engage with India's commerce and streamline processes to reduce the pressure of compliance.

In its post on X, FICCI has mentioned FM Nirmala Sitharaman as well as the Ministry of Finance to bring their notice to the body's expectations from the upcoming budget.

In conversation with Gadgets360, Sharat Chandra, Founder of EmpowerEdge Ventures, said that through blockchain, the industry can benefit from increased transparency, efficiency, and security in trade operations.

“It is heartening to see industry bodies like FICCI taking the lead in advocating for the adoption of cutting-edge technologies,” Chandra said. “FICCI's recommendations demonstrate a commitment to drive progress and create an environment conducive to co-creation and innovation.”

This is not the only suggestion that FICCI has extended to India's finance ministry that hints at a pro-Web3 approach.

In another post on X, the trade body noted that increasing cross-border paperless trade activities and implementation of electronic exchange of documents was the need of the hour.

As we know, information stored on a blockchain is tamper-proof, which brings a rather thick layer of transparency to logged details saved on the network. Facilitating the exchange of documents through blockchain networks would not only make the transfer transparent, but also keep the sensitive data more secured against malicious actors.

FICCI also recommends that adequate budget needs to be allocated towards the research and development around newer technologies including blockchain, AI, quantum computing, cyber security, and privacy technology.

“Outline vision for tokenisation of assets like real estate and corporate debt on blockchain. Allocate seed capital for industry utilities for cyber frauds, money laundering, and climate risk data,” FICCI posted on X, quoting Saurabh Tripathi, Chair, FICCI Fintech Committee and Global Leader, Financial Institutions, BCG.

“As the government considers these proposals, it is crucial that the government prioritises the implementation of such forward-thinking initiatives to unlock the full potential of blockchain in trade and commerce,” Chandra noted.


Is the Samsung Galaxy Z Flip 5 the best foldable phone you can buy in India right now? We discuss the company's new clamshell-style foldable handset on the latest episode of Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.


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