India has emerged as a leading global player in the Web3 market, says a new report by Nasscom. Web3 investments in the country grew 37x from early 2020 to Q1 2022 US$1.1 trillion in Web3 economic value expected to be added to India’s GDP by 2032.
India is emerging as a leading global player in the Web3 market
Nasscom on Wednesday released a report titled The India Web3 Startup Landscape: An Emerging Technology Leadership Frontier. Founded in 1988, Nasscom is a not-for-profit industry association serving the technology sector in India. The organization has more than 3,000 members who account for 90% of the industry’s revenue, details on its website.
The report says:
India has emerged as a leading global player in the Web3 market with a competitive talent pool, high adoption rates and products built for the world.
The total number of Web3 startups in India exceeded 450 in the first half of this year; They have raised more than $1.3 billion since 2020. The average transaction size in 2021 was about US$10 million and there were more than 70 active institutional investors in the Indian Web3 space in 2021.
“Web3 focus grew rapidly in India in 2015-17 with the launch of Ethereum in line with global growth, but grew phenomenally in 2020-21 after the national cryptocurrency ban was lifted,” the report continues, stating:
Web3 investments have grown 37x from early 2020 to Q1 2022.
In addition, the report estimates that $1.1 trillion in economic value will be added to India’s GDP by Web3 by 2032.
Cryptocurrency has never been banned in India. However, the central bank, the Reserve Bank of India (RBI), imposed a banking ban on the crypto industry, which the Supreme Court overturned in March 2020. In May last year, the RBI confirmed that its crypto banking ban is no longer in effect. Nonetheless, the central bank continues to have “major concerns” about the cryptocurrency.
“However, Indian Web3 startups face major barriers to scale due to lack of regulatory clarity and policy alignment, which threatens India’s competitive advantage,” the report concludes:
Web3 will prove to be game changers for economies that can bring together the right ecosystem partners to take the right steps early on to support this industry.
Debjani, President of Nasscom, was quoted by local media as saying:
India’s rapid adoption of new-age technologies, burgeoning startup ecosystem and vast pool of digitally skilled talent are solidifying the country’s position in the global Web3 landscape.
“While we’re just scratching the surface of emerging technologies like Web3, the Techade will only be about the technology making meaningful advances that lead to innovative use cases and greater positive impact at the grassroots level,” she said.
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