India is poised to become a significant player in the web3 space, according to a blockchain and artificial intelligence expert. With over 750 million active internet users as of January 2024, India’s tech-savvy population and booming IT sector, which accounted for 7.5% of its $3.9 trillion economy in 2023, provide a solid foundation for this growth.

India’s digital competitiveness score of 60 places it ahead of other BRICS nations, except China, reinforcing its status as a global IT leader. This environment is fostering the growth of the web3 and blockchain sector, with over 1000 startups already exploring these technologies. Estimates suggest that India’s web3 market could be valued at over $1 billion by 2032.

Sanjay Saxena, co-founder and CEO of CIFDAQ, an AI-powered blockchain network, noted that India’s young population is a driving force behind this growth. The share of global web3 developers in India has increased from 3% in 2018 to 12% in 2023. Saxena emphasized that many developers are between the ages of 20 and 22, reflecting the youthful energy fueling India’s web3 development.

India’s educational institutions, such as the Indian Institutes of Technology and National Institutes of Technology, have been pioneers in adopting emerging technology-based courses, including blockchain and other web3-related studies since 2018. These initiatives are helping create a skilled workforce capable of tackling the challenges of a decentralized future.

The Indian government has also shown openness to adopting blockchain technology. Initiatives like the Central Bank Digital Currency project aim to create a blockchain alternative to the Indian rupee, and the Ministry of Electronics and Information Technology is working on a unified blockchain framework. Over 50% of Indian states are exploring various blockchain initiatives.

Notable examples include Tamil Nadu’s blockchain backbone initiative, which aims to secure and ensure the integrity of critical documents and data, and West Bengal’s NFT-based land mutation program, which created 50,000 NFTs to represent one million property records.

India’s private sector is also embracing blockchain. Tech Mahindra has launched a “Stablecoin-as-a-Service” solution targeting financial institutions worldwide, while Reliance has implemented blockchain in its supply chain processes. Infosys has developed blockchain-based applications for banks and insurance companies to streamline processes and reduce fraud.

However, the web3 sector still faces challenges, primarily due to unclear regulatory frameworks. The Indian government is in the process of defining and implementing regulations to support the growth of blockchain technologies. Ambiguous tax laws and punitive tax requirements pose operational challenges for web3 startups, leading to a “brain drain” as businesses and professionals relocate to more favorable jurisdictions.

Saxena urges the government to offer tax incentives and focus on infrastructural development. He believes that a combination of a skilled talent pool, strong ecosystem, favorable demographics, educational initiatives, government support, innovation, and community engagement positions India to become a leader in the web3 space.

For more insights and the latest news on cryptocurrencies and blockchain, explore Global Crypto News.

Post Views: 5