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In exclusive comments to crypto.news, a blockchain and artificial intelligence expert discussed why he believes India is destined to become a Web3 powerhouse.
India has long been a tech-savvy nation, with over 750 million active internet users as of January 2024. The country's burgeoning IT sector accounted for 7.5% of its economy of approximately $3.9 trillion in 2023.
With digital competitiveness technology-india” target=”_blank” rel=””>score With 60 countries, putting it ahead of all other BRICS except China, India has proven its position as a global IT powerhouse. Naturally, this lays a strong foundation for the nation to support the promising Web3 and blockchain sector.
However, this idea does not come out of nowhere. India is already home to more than 1000 new companies which are actively exploring web3 and blockchain technologies. Some estimates expect the country’s web3 market to be valued at over $1 billion by 2032.
This growth is said to be supported by India’s “predominantly young population,” according to Sanjay Saxena, co-founder and CEO of ai-powered blockchain network CIFDAQ, who noted that India’s share of global web3 developers has increased from 3% in 2018 to 12% in 2023.
“India is nurturing a new generation of tech-savvy individuals. A large proportion of the developer base is between the ages of 20-22, reflecting the youthful energy driving Web3 development in India,” Saxena told crypto.news.
Leading educational institutions in India, such as the Indian Institutes of technology and National Institutes of technology, have been pioneers in adopting courses based on emerging technologies, introducing studies in blockchain and other web3-related technologies as early as 2018.
Saxena explained that these initiatives are helping to create a skilled workforce that will position India to “address the challenges of the decentralized future.”
Furthermore, the government has also shown openness to the adoption of 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 by the Ministry of Electronics and Information technology to create a unified blockchain framework.
In addition to this, more than 50% of Indian states are already exploring various blockchain initiatives, Saxxena added.
Notable examples include Tamil Nadu state's blockchain backbone initiative, a blockchain infrastructure-as-a-service that aims to protect and secure the integrity of critical documents and data. Meanwhile, West Bengal state's land nft initiative tech-to-keep-new-town-land-records/articleshow/101500849.cms” target=”_blank” rel=””>mutation program was the first of its kind to create 50,000 nfts to represent one million ownership records.
India’s private sector has not been shy about implementing blockchain either. tech Mahindra, a technology giant with a presence in over 90 countries, launched a “Stablecoin-as-a-Service” solution targeting financial institutions around the world that facilitates more efficient and secure digital transactions. Reliance, one of India’s largest conglomerates, has been implementing blockchain in 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.
Ambiguous tax laws persist despite repeated claims from key industry players, and this, according to Saxena, poses operational challenges for Web3 startups. Beyond the impact on the cryptocurrency trading economy, which has reportedly migrated to offshore exchanges, strict tax requirements are also causing a “brain drain.”
Many virtual digital asset companies and professionals are moving “to more favourable jurisdictions abroad,” Saxena stressed, adding:
“This migration not only results in a loss of talent, but also diminishes India’s potential as a hub for digital innovation.”
To address this, Saxena urges the government to offer fiscal incentives and focus on infrastructure development, reiterating that the “combination of a skilled talent pool, a robust ecosystem, favourable demographics, educational initiatives, government support, innovation and community engagement creates a compelling case for India’s rise in the web3 space.”
