India has emerged as a major global player in the Web3 market, says a new Nasscom report. Web3 investment in the country grew 37-fold from the start of 2020 through the first quarter of 2022, By 2032, $1.1 trillion in Web3 economic value is projected to be added to India’s GDP.
India Emerges as Leading Global Player in Web3 Market
Nasscom on Wednesday released areporttitled “The India Web3 Startup Landscape. The State of India’s Web3 Startups: at the Forefront of Emerging Technology Leadership” Founded in 1988, Nasscom is a non-profit trade association for the Indian technology sector. The organization has more than 3,000 members and accounts for 90% of the industry’s revenue, its website details.
India has emerged as a major global player in the Web3 market due to its competitive talent pool, high penetration, and products tailored for the world.
Total number of Indian Web3 startups as of the first half of this year was over 450, raising over $1.3 billion in 2020 and beyond; average deal size in 2021 was about $10 million, and the Indian Web3 space in 2021 had over 70 active institutional investors were present.
“The focus of Web3 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 country’s cryptocurrency ban was lifted,” the report further elaborates.
Web3 investments grew 37x from the start of 2020 to the first quarter of 2022.
It further estimates that $1.1 trillion in Web3 economic value will be added to India’s GDP by 2032.
Cryptocurrencies have never been banned in India. However, the central bank, the Reserve Bank of India (RBI), imposed a banking ban on the crypto industry that was lifted by the Supreme Court in March 2020. Last May, the RBI confirmed that the crypto banking ban was no longer in effect. Nonetheless, central banks continue to have “major concerns” about cryptocurrencies.
“However, Indian Web3 startups see significant obstacles to scaling up due to lack of regulatory clarity and policy direction, jeopardizing India’s competitive advantage,” the report explains, concluding.
Web3 will be a game changer for an economy that can take the right steps early on to bring together the right ecosystem partners to promote this industry.
Local media quoted Debjani, president of Nasscom, as saying.
India’s rapid adoption of new-age technologies, developing startup ecosystems, and large pool of digitally skilled talent have cemented its place in the global Web3 landscape.
“We have only scratched the surface when it comes to new technologies like Web3, but at Techade, we will see significant advances in technology that will lead to innovative use cases and positive impacts extended at the grassroots level,” she opined.
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