18 October 2023
India is a country with the Biggest IT and Software Industry, the biggest Pharmaceutical Industry, the Largest Milk Producer, Biggest Textile Industry at the same India is the Most populous Country and due to being the most populous country, India is having largest number of judiciary cases. Which ultimately leads to a skewed trust ratio between large and small enterprises. As India is being most populous country, we also have the highest amount of unemployment.
To bridge the gap of unemployment and to make India a superpower the MSMEs ‘Micro Small and Medium Enterprises industries make a significant contribution to the nation’s socioeconomic growth. Due to the sector’s contribution to the GDP and exports of India, it has taken on a significant amount of priority. The sector has also made significant contributions to the growth of entrepreneurship, particularly in India’s semi-urban and rural areas. As per the data collected from different sources in India, there are approximately 14 million registered MSMEs, which contributed 30% of gross value in the Country’s GDP in FY 20. MSMEs covered 49.5% of product exports in FY21. More than 10 million people will be employed by MSMEs by FY22 and projected to employ more than 50 million by FY25. Aren’t the facts and figures amazing? On one end while MSMEs are supporting our national economy as a backbone at the same time MSMEs are struggling with some issues majorly ‘THE DIGITAL GAP’.
Numerous microbusiness processes of MSMEs are currently manual, not trustworthy, and not scalable.
- The process of updating current systems or completely developing new ones is difficult. Infrastructure and tools are required to track and identify promising firms early enough in their lifecycle for them to grow.
- Emerging digital data and technologies such as fintech, E-commerce and ERP give us a unique and unprecedented opportunity to address the questions above with reasonable efficiency and effectiveness, but to connect with bigger enterprises, more trustworthy and reliable technical platforms are required.
- These digital gaps increase the trust issues between large and small enterprises. And result in many judicial disputes between business entities.
To fill the digital gap and develop an electronic trust system technology can play a vital role. Among many technology pools, ‘Blockchain technology definitely has the capacity to turn the tables. Blockchain technology is an effort to restore the long-lost trust in digital transactions. It is made up of technology to establish trust, particularly cryptography, which is used to handle sensitive data and automate and enforce the trust in the system.
Blockchain or DLT (Distributed Ledger Technology) is a database of transaction records which is distributed, verified, and kept up to date globally by a network of computers. Blockchain records are governed by a wide community rather than a single central organisation, like a bank, and no one person has exclusive control over these records.
Certain biggest advantages of using Blockchain technology are It has no Central Authority, the records and transactions are Verifiable and auditable, it allows disintermediation as no middleman, confidentiality and integrity of data are promised and it is far more robust than other options.
Often Blockchain technology is more popularly considered cryptocurrency. But let’s change our perspective that Cryptocurrencies simply implement blockchain technology. The use of Blockchain technology is far wider than cryptocurrencies. As of now almost every socio-economic sector and domain is exploring the usages of blockchain technology and coming up with revolutionary ideas and implementation of the technology. The list is increasing every day and larger enterprises are coming up with solutions to the problems, which were considered impossible to solve.
CEO, Coder Edge Technologies