Originally published on: December 05, 2024
India’s strides in the Web3 landscape are fueled by a robust network of startups, substantial global investments, and a talented pool of developers. According to a recent report, India has emerged as a key player in Web3 innovation, with over 1,000 startups spanning various sectors such as finance, infrastructure, and entertainment.
The report, unveiled at the India Blockchain Week conference by Hashed Emergent, highlights India’s growing influence in the Web3 space. By 2024, India is home to nearly 12% of the world’s crypto developers, positioning it as the second-largest developer hub globally. Projections indicate that India is on track to claim the top spot by 2027, underscoring the country’s momentum in driving Web3 innovation.
In terms of funding, Indian Web3 startups have collectively raised over $3 billion since 2020, signaling a flourishing ecosystem. The first nine months of 2024 alone saw investments totaling $462 million, marking an impressive 82% growth compared to the previous year. Global Web3 funds, accelerators, and blockchain ecosystems have played a pivotal role in fueling this surge, with a significant portion of investments channeled towards infrastructure-focused startups.
Despite initial challenges posed by India’s crypto tax regulations, the country has witnessed a resurgence in crypto investing, particularly in centralized exchanges. CoinDCX data reveals that blue-chip cryptocurrencies feature prominently in 45% of retail portfolios in India, reflecting a growing appetite for digital assets among investors.
In the gaming sector, India is poised for significant growth, with Lysto predicting a market value of $9.2 billion in the next five years. Web3 gaming is anticipated to be a key driver of this growth, characterized by higher average revenue per user.
India’s crypto adoption landscape ranks among the highest globally, based on on-chain metrics, trailing only behind the US, UK, China, and Nigeria. Government initiatives at both central and state levels have propelled Web3 growth, with applications such as land registry, digital certification, and supply chain management gaining traction.
Leading protocols such as Avalanche, Aptos, Ethereum, Polygon, Solana, and Ton have a strong presence in India, contributing to the country’s vibrant Web3 ecosystem. However, regulatory challenges, including perceived innovation barriers and tax inconsistencies, remain key hurdles that need to be overcome for sustained growth.
Despite these obstacles, India’s Web3 landscape continues to evolve, driven by a combination of entrepreneurial spirit, investor interest, and technological prowess. As the country solidifies its position as a Web3 powerhouse, opportunities for innovation and collaboration abound, promising an exciting future for India’s digital economy.