Scope and Challenges of Blockchain in Indian Supply Chain Transformation for MSMEs

Abstract

Micro, Small, and Medium Enterprises (MSMEs) contribution is around 29% of India’s GDP through national as well as international trade. They are not only providing employment on a larger scale but they are also contributing to the economic development of the underdeveloped and rural areas of India. MSME's old approach is unable to keep up with today's global business operations. Numerous studies have highlighted several reasons why the operations of MSMEs are insufficient: To begin with, MSMEs' transactions are typically kept in sync with a centralized system provided by third-party software vendors. Second, there is a lot of information scattered throughout the lifespan, such as an updated bill, real-time efficiency assessments, and changing maintenance requirements. Third, conventional information frameworks lack an effective method for exchanging expertise and resources. Due to this crucial contribution, MSMEs must adopt a new technological advancement and need to drive the business efficiently and effectively for India’s growth. This article focuses on use cases and research is done on one of the technological advancements, Blockchain technology. Through cryptocurrencies, Blockchain technology has disrupted the FinTech industry with humongous recognition from the Public as well as the Private Sector. Likewise, Blockchain technology has significant importance in the supply chain management of products or services. This article contains the inferences from the primary research on the adoption of Blockchain technology in MSMEs’ supply chain, various models, challenges, and the overall scope of transforming the supply chain of Indian MSMEs. The article has also covered the study of Global MSMEs. The objective of this study is to reduce the gap in the literature and to help MSMEs to adopt Blockchain technology in their supply chain management functions. The findings imply that by using BT, MSMEs can grow their operations and streamline their supply chains.