Focus on four verticals—banking, financial services and insurance (BFSI), pharma and healthcare, govt departments & institutions, and logistics
Almost a year after announcing a partnership with IT major Tech Mahindra to create a Blockchain district, Telangana, the newest state of India, has now published a draft policy for Blockchain with incentives to attract companies to the state.
In a bid to place the southern Indian state as the blockchain capital of India, the Telangana government has announced that this “one of a kind initiatives will aim to put all blockchain companies based out of Hyderabad at a strategically advantageous position globally”. The policy could perhaps turn Hyderabad into one of the top 10 blockchain cities in the world.
According to the state’s new draft policy, blockchain companies will be able to avail land at a subsidised rate under the state’s industrial infrastructure corporation. The policy states that the government has proposed 25% subsidy on lease rentals up to Rs 5 lakh annually for the company’s first three years of operations. Office spaces for all blockchain startups, co-working, and incubation spaces will also be provided at highly subsidised rates.
The World Economic Forum predicted that blockchain could account for 10% of global GDP by 2025, which is reflected in the growing interest of Indian states in blockchain technology. Blockchain allows storage and processing of data in a distributed manner across its network members, otherwise known as nodes. The key idea is that no central body has singular control over the data or content, and thereby it cannot be deleted or erased from records.
In 2018, the Kerala State Development and Innovation Strategic Council had launched Accelerated Blockchain Competency Development (ABCD) programme. The programme graduates were recruited by major IT firms such as IBS Software Services, Suntech, UST Global, and Ernst & Young.
In 2016, Andhra Pradesh had launched its flagship blockchain initiative—Fintech Valley Vizag, a self-sustainable, global fintech ecosystem that focuses on converging finance and technology to create large avenues of growth.
To begin with the Telangana government wants to focus on four verticals: Banking, financial services and insurance (BFSI); Pharmaceuticals & Healthcare; Government departments & Institutions; Logistics & Supply Chain.
However, the government is not keen on promoting tokenisation, which would discourage a lot of projects to work from India.