FICCI recommends development of blockchain-based trading portal ahead of budget

The Indian government will present the budget for the fiscal year 2024-25 on July 23. Ahead of the upcoming budget announcement, the Federation of Indian Chambers of Commerce and Industry (FICCI), India’s non-governmental trade and commerce organisation, has floated a proposal to create a blockchain portal that will unify all trade activities in India while adhering to legal compliances. The Indian government has in the past recognised the potential of blockchain technology in various sectors, including e-governance, healthcare and finance.

In a post on X, FICCI published its budget proposal for a single blockchain-based portal for all trade-related compliances. The industry body believes that such a portal will connect shipping lines, logistics service providers, banks and customs, and provide members of the Indian trade and commerce sector with a single dashboard to facilitate cross-platform connectivity and internal communication.

According to FICCI, the portal could also make it easier for exporters to participate in Indian trade and streamline processes to reduce compliance pressures.

In its post on X, FICCI has called Finance Minister Nirmala Sitharaman and the Ministry of Finance to apprise them of the organization’s expectations for the upcoming budget.

Speaking to Gadgets360, Sharat Chandra, Founder of EmpowerEdge Ventures, said that blockchain will enable the sector to benefit from greater transparency, efficiency and security in trade transactions.

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

This is not the only suggestion FICCI has made to the Indian Finance Ministry that points to a pro-Web3 approach.

In another post on X, the industry body noted that expanding cross-border, paperless trade activities and implementing electronic document exchange is the need of the hour.

As we know, information stored on a blockchain is tamper-proof, which provides a pretty thick layer of transparency to recorded details stored on the network. Facilitating the exchange of documents via blockchain networks would not only make the transfer transparent, but also make the sensitive data more secure from malicious actors.

FICCI also recommends allocating sufficient budget for research and development in newer technologies, including blockchain, AI, quantum computing, cybersecurity and privacy technology.

“Outline the vision for tokenization of assets such as real estate and corporate debt on blockchain. Allocate seed capital to industrial utilities for cyber fraud, money laundering, and climate risk data,” FICCI posted on X, quoting Saurabh Tripathi, Chair of the FICCI Fintech Committee and Global Leader, Financial Institutions, BCG.

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