As per a report by Bharat Web3 Association the global Web3 and Metaverse market is expected to contribute $13 trillion to the global GDP by 2030. For India, this presents a massive opportunity. With over 900 startups in the sector and Indian employees making up 11% of the global Web3 talent pool, India is well-positioned. Since 2018, blockchain-related jobs in India have surged by 138%. Looking at the growth, Web3 could contribute over $1 trillion to the Indian economy by 2032.
While regulatory clarity remains a work in progress, India’s embrace of the Financial Intelligence Unit (FIU) registration requirement is a positive step, creating a safer trading environment for all. However, challenges persist, such as the 1% TDS and the inability to offset losses. As an industry, we are advocating for a reduction in TDS to 0.01%, recognizing that with community support, we can shape more favourable tax laws for crypto in India.
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The Young DemographicIndia’s greatest asset is its young, tech-savvy population, fueling a vast talent pool of engineers and IT professionals well-versed in blockchain and crypto. Our educational institutions are swiftly adapting, integrating blockchain and Web3 courses into their curricula, ensuring a steady stream of skilled professionals ready to drive innovation.Thriving startup ecosystemIndia’s startup ecosystem is a global powerhouse, with cities like Bengaluru, Hyderabad, and Mumbai emerging as epicenters for tech innovation, including Web3 ventures. The entrepreneurial spirit is strong, with numerous incubators, accelerators, and venture capital firms supporting new ventures. Startups in India are not only working on cryptocurrency exchanges but are also exploring diverse applications of blockchain such as decentralised finance (DeFi), non-fungible tokens (NFTs), supply chain transparency, and digital identity verification.India’s Robust IT Sector
Web3 technology is intricately linked to the IT sector, which is one of India’s greatest strengths. Industries such as IT, Big Data, Cloud, and AI contribute $200 billion to India’s GDP and have created over 4 million jobs, indirectly supporting another 10 million jobs. By leveraging our proven track record in driving technological revolutions and combining it with our strong Web3 development foundation, robust investments, and a conducive ecosystem, the potential outcomes are truly transformative. Additionally, India’s advanced digital payment infrastructure, exemplified by systems like the Unified Payments Interface (UPI), has revolutionized financial transactions, laying the groundwork for seamless Web3 application adoption.
Blockchain technology can also transform sectors beyond finance, such as healthcare, education, and infrastructure. By applying principles of data transparency, accountability, and security, we can drive rapid growth and generate spillover benefits for the entire economy.
The Indian government’s proactive approach towards digital transformation is creating a favorable environment for Web3 technologies. By promoting policies that support technological innovation and investing in digital infrastructure, the government is paving the way for India to become a leader in the Web3 space.
While regulatory frameworks continue to evolve, developments like the FIT21 Act in the U.S. are game-changers, offering regulatory clarity and fostering innovation. Such initiatives pave the way for wider crypto adoption and the integration of digital assets into traditional markets – a path India should closely examine.
To fully capitalise on our first-mover advantage, we must prioritise growing the Web3 ecosystem. This involves educating the youth about Web3, nurturing a robust developer community dedicated to building Web3 products, and creating abundant career opportunities in this space. Developing consumer-centric decentralised applications (dapps) tailored to the Indian market is paramount. One of the key factors that will drive Web3 adoption is when companies see tangible growth by joining this ecosystem. We need to reach a sizable audience of users who will adopt Web3 products faster than Web2.
India’s first-mover advantage in Web3 technology stems from its young and skilled demographic, vibrant startup ecosystem, strong IT sector, advanced digital infrastructure, supportive government policies, and the potential for significant socio-economic development. As the world transitions to a decentralised digital economy, India is poised to lead the charge, driving innovation and setting global benchmarks in Web3 technology. Our strategic approach and inherent strengths ensure that we will continue to be a pivotal force in shaping the internet’s future on a global scale.
(The author is the CoFounder of Shardeum – an auto scaling Layer 1 blockchain)