In exclusive comments to crypto.news, a blockchain and artificial intelligence expert discussed why he believes India is on the verge of becoming a Web3 powerhouse.
India has long been a tech-savvy country, with over 750 million active internet users as of January 2024. The country’s booming IT sector accounted for 7.5% of the roughly $3.9 trillion economy in 2023.
With a digital competitiveness score of 60, putting it ahead of all other BRICS countries except China, India has proven its status as a global IT powerhouse. Naturally, this lays a solid foundation for the nation to support the promising web3 and blockchain sector.
Yet this idea did not come out of the blue. India is already home to over 1000 startups actively exploring web3 and blockchain technologies. Some estimates expect the national Web3 market to be worth more than $1 billion by 2032.
This growth would be supported by India’s “predominantly young population”, said Sanjay Saxena, co-founder and CEO of AI-powered blockchain network CIFDAQ, who highlighted that India’s share of global Web3 developers has risen from 3% to 12% in 2018. in 2023.
“India is nurturing a new generation of tech-savvy individuals. A large portion of the developer base is between 20 and 22 years old, which reflects the youthful energy driving Web3 development in India,” Saxena told crypto.news.
Top-tier educational institutions in India such as the Indian Institutes of Technology and National Institutes of Technology have been pioneers in adopting emerging technology-based courses, introducing studies in blockchain and other web3-related technologies as early as 2018.
Saxena explained that these initiatives will help create a skilled workforce that will enable India to “address the challenges of the decentralized future.”
Furthermore, the government has also shown openness to adopting blockchain technology, as evidenced by the multitude of initiatives such as the Central Bank Digital Currency project, which aims to create a blockchain alternative to the Indian rupee, and the initiatives of the Ministry of Electronics and Information Technology to create a unified blockchain framework.
Moreover, more than 50% of Indian states are already exploring various blockchain initiatives, Saxxena added.
Some notable examples include the state of Tamil Nadu’s blockchain backbone initiative, a blockchain-as-a-service infrastructure that aims to secure and ensure the integrity of critical documents and data. Meanwhile, West Bengal state’s NFT-based land mutation program was the first of its kind to create 50,000 NFTs representing one million property records.
You might also like: CoinDCX Unveils Streamlined Web3 Development in India
The private sector in India has also not shied away from implementing blockchain. Tech Mahindra, an IT giant with a presence in over 90 countries, launched a ‘Stablecoin-as-a-Service’ solution aimed at financial institutions worldwide and enabling more efficient and secure digital transactions. Reliance, one of India’s largest conglomerates, has implemented blockchain into its supply chain processes.
Another IT giant, Infosys, has developed blockchain-based applications for banks and insurance companies, with the aim of streamlining processes and reducing fraud.
However, challenges remain as the web3 sector needs clearer regulatory frameworks. The Indian government is still in the process of defining and implementing regulations that can fully support the growth and potential of blockchain technologies.
Despite repeated calls from key industry players, ambiguous tax laws persist, posing operational challenges for web3 startups, according to Saxena. In addition to the impact on the crypto trading economy, which has reportedly migrated to offshore exchanges, the punitive tax requirements are also causing a ‘brain drain’.
Many virtual digital asset companies and professionals are moving “to more favorable jurisdictions abroad,” Saxena underlined, adding:
“This migration not only results in a loss of talent, but also reduces India’s potential as a hub for digital innovation.”
To address this, Saxena urges the government to provide tax breaks and focus on infrastructural development, reiterating that the “combination of a skilled talent pool, a strong ecosystem, favorable demography, education initiatives, government support , innovation and community engagement creates a compelling case for India’s rise in the web3 space.”
Read more: India’s Web3 Social Metaverse Taki Launches Beta Version, Opens Access to Public