The India Web3 Startup Landscape: An Emerging Technology Leadership Frontier was the headline of a report released by Nasscom on Wednesday. Nasscom is a non-profit trade group representing the Indian technology industry that was founded in 1988. According to the organization's website, its more than 3,000 members account for 90% of the sector's revenue.
From the beginning of 2020 to Q1 2022, Web3 investments in the nation increased 37 times, and by 2032, $1.1 trillion in Web3 economic value is expected to have been added to India's GDP.
India Becomes a Global Leader in the Web3 Market
The India Web3 Startup Landscape: An Emerging Technology Leadership Frontier was the headline of a report released by Nasscom on Wednesday. Nasscom is a non-profit trade group representing the Indian technology industry that was founded in 1988. According to the organization's website, its more than 3,000 members account for 90% of the sector's revenue.
In India, there were more than 450 Web3 startups as of the first half of this year; they have raised more than $1.3 billion since 2020. In 2021, the Indian Web3 market had more than 70 active institutional investors, and the average deal size was around $10 million.
According to the report, Web3 focus expanded quickly in India in 2015–17 with the introduction of Ethereum, in pace with worldwide growth, but it grew tremendously in 2020–21 after the government's prohibition on cryptocurrencies was overturned.
The report also predicts that by 2032, Web3 economic value will increase India's GDP by $1.1 trillion.
In India, cryptocurrencies were never outlawed. The Reserve Bank of India (RBI), the country's central bank, nevertheless put a banking ban on the cryptocurrency sector, which the supreme court removed in March 2020. The RBI stated that its ban on cryptocurrency banking had been lifted in May of last year. The central bank however still has "serious worries" about cryptocurrencies.
However, the lack of legal clarity and policy direction poses significant scaling challenges for Indian Web3 firms, endangering India's competitive advantage, according to the paper.
The Techade will focus on the technology making major advancements that lead to creative use-cases and magnified beneficial impact at a grassroots level, she said, even though we are only touching the surface of developing technologies like Web3.
