The phenomenon of decentralized finance, or DeFi, is changing the financial systems, whereby the emerging blockchain technology provides decentralized and secured means of finance-free alternatives over conventional organic banking systems. In this research paper, the current situation regarding both technologies is assessed with regards to application incorporates in India and their application, potentiality, and challenges. Thus, the research works forward toward the area in exploring and defining improvement in the uses of blockchain (BC) and DeFi against inefficiencies of a specific level such as supply chain management, healthcare, banking and real estate, while promoting financial inclusion and alleviating socio-economic equality. Apart from this, BC and DeFi emphasize access to financial resources and economic growth by analyzing socio-economic impacts of BC and DeFi on them. BC and DeFi development are influenced by other factors such as emerging regulatory uncertainties, technological hindrances and increasing threats through the internet to cyber in India. Hence, the findings show that, along with a proper legislative framework, even better protection and strategic investments in ICT infrastructure would help to get the best out of new technologies in changing socio-economic scenarios in India. This study also provides insights into legal frameworks, technology readiness and cyber-security strategies that would help the corporate sector in India better navigate the complexity involved in adopting DeFi and BC.