India is all set to embrace blockchain, distributed ledger technology (DLT), and tokenization of real-world assets (RWAs) in 2025 as provincial governments and startups take innovative approaches to deliver effective solutions. The South Asian nation aims to become a digital powerhouse while leveraging emerging technologies as a catalyst for economic growth.
“In 2025, I expect more robust regulations that favor enterprise-level blockchain adoption, with tokenization playing a key role in industries like real estate, finance, and retail,” said Rohan Sharan, founder and chief executive of Timechain Labs, an on-chain application development firm utilizing BSV blockchain technology.
For instance, the Odisha provincial government has become the first state in India to implement blockchain technology, marking a groundbreaking step in enhancing support systems for survivors of gender-based violence.
“The Shakti application represents a bold and innovative approach to addressing gender-based violence in Odisha. By utilizing blockchain technology, we are ensuring that survivors receive dignified, timely, and trauma-free support. As we prepare to scale this initiative statewide, we are not just improving processes—we are redefining what it means to deliver survivor-centric care,” said Pravati Parida, Deputy Chief Minister of Odisha.
Regulatory clarity
In 2025, India’s blockchain ecosystem may also gain regulatory clarity, as the International Financial Services Centres Authority (IFSCA) is expected to submit a report with guidelines, according to a local media report. Final regulations could be developed based on this report.
IFSCA is a government initiative headquartered in GIFT City in the western Indian state of Gujarat.
“Looking forward to 2025, we can anticipate the rollout of more comprehensive regulations that will support blockchain’s integration into everyday business practices. The establishment of a robust policy framework is crucial for fostering innovation while ensuring consumer protection,” Sharat Chandra, founder of EmpowerEdge Ventures and a startup enabler, told CoinGeek.
In September 2023, IFSCA was formed as a seven-member committee of experts to develop regulations and policy guidelines for tokenizing real and physical assets, as well as look into the legal validity of smart contracts. The idea behind forming such a committee was to create a regulatory framework for blockchain as a technology and tokenization.
“Looking ahead to 2025, India is poised for deeper integration of blockchain in healthcare, supply chains, and MSMEs (small and medium businesses). The focus is expected to shift toward interoperability, scaling blockchain applications for mass adoption, and formulating clear regulations,” Raj Kapoor, founder of India Blockchain Alliance (IBA), told CoinGeek.
“The potential for public-private collaborations and India’s vast developer base could drive transformative innovations. However, achieving this vision will require addressing challenges like regulatory clarity, infrastructure scalability, and public awareness. India’s trajectory reflects its growing prominence as a hub for blockchain innovation, offering a model for global adoption while contributing to its digital economy’s resilience,” Kapoor added.
Greater adoption in finance sector
The year 2025 is also expected to see increased adoption of blockchain among banks and financial institutions as they integrate the technology for secure and efficient transactions, pointed out Amit Kumar Gupta, a legal practitioner at the Supreme Court of India.
Interestingly, the Reserve Bank of India (RBI) acknowledged that the growing adoption of blockchains and distributed ledger technology has bolstered support for tokenized deposits or digital representations of traditional bank deposits hosted on a secure blockchain. Tokenized deposits could have a range of applications in domestic and cross-border payments, trading and settlement, and cash collateral management. Moreover, by being programmable, they can integrate smoothly into smart contracts, combining payment details and value to enable ‘atomic’ settlement.
In 2025, “Anticipate clearer guidelines from the government, potentially boosting investor confidence and mainstream adoption. Indian developers are likely to focus more on building scalable dApps, driving innovation in the blockchain space,” Gupta added.
Watch: ‘Disruptive’ blockchain can be useful for India
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