Blockchain's role in social welfare, financial inclusion, and public sector innovations in India: A multi-sector analysis of government-led initiatives

This study investigates the integrated impact of blockchain technology in enhancing transparency, mitigating corruption, fostering trust, and promoting financial inclusion within India's public sector, focusing on social welfare programs and related services for economically weaker sections (EWS) in urban slums. Using a mixed-methods approach combining surveys (n = 700) and qualitative insights from beneficiaries and public sector experts (n = 30) in Punjab, the research assesses government-led blockchain initiatives like the Vishvasya-Blockchain Technology Stack and NBFLite. Findings reveal significant positive associations between blockchain implementation and improvements in transparency (β = 0.74), trust (β = 0.76), financial inclusion (β = 0.68), and perceived corruption reduction (β = −0.63). Qualitative data contextualizes these findings, highlighting user experiences and critical adoption barriers, particularly digital literacy. The study contributes a novel, synthesized perspective on blockchain's potential to drive synergistic improvements across interconnected public service domains (welfare, financial inclusion, potentially others like health/education), offering a holistic view crucial for urban policy and planning. Results provide actionable recommendations for policymakers regarding scaling adoption, addressing implementation challenges, investing in digital literacy, and establishing robust governance frameworks to leverage blockchain as a tool for inclusive socio-economic development in rapidly digitalizing urban environments.