Web3 Ecosystem to Add $1.1 Trillion to India’s GDP by 2032: Report

India has emerged as a leading global player in the Web3 market, a new report by Nasscom states. Web3 investments in the country grew 37 times from the start of 2020 to Q1 2022 and $1.1 trillion in Web3 economic value is projected to be added to India’s GDP by 2032.

India Emerges a Leading Global Player in Web3 Market

Nasscom published a report titled “The India Web3 Startup Landscape: An Emerging Technology Leadership Frontier” Wednesday. Established in 1988, Nasscom is a non-profit industry association for the technology sector in India. The organization has more than 3,000 members, representing 90% of the industry’s revenue, its website details.

The report states:

India has emerged as a leading global player in the Web3 market, with a competitive talent pool, high rates of adoption and products built for the world.

The total number of Web3 startups in India as of the first half of this year was more than 450; they have raised more than $1.3 billion since 2020. The average deal size in 2021 was about $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 further details, elaborating:

Web3 investments grew 37x since the start of 2020 through Q1 2022.

In addition, the report estimates that $1.1 trillion in Web3 economic value will be added to India’s GDP by 2032.

Cryptocurrency was never 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 lifted in March 2020. In May last year, the RBI confirmed that its crypto banking ban was no longer valid. Nonetheless, the central bank continues to have “major concerns” about cryptocurrency.

“However, Indian Web3 startups see major roadblocks in scaling up due to lack of regulatory clarity and policy direction, risking India’s competitive advantage,” the report describes, concluding:

Web3 will prove game-changing for economies that can bring together the right ecosystem partners to take the right steps early on to facilitate this industry.

Debjani, president of Nasscom, was quoted by local media as saying:

India’s rapid adoption of new-age technologies, its growing start-up ecosystem, and large-scale digitally skilled talent potential is cementing the country’s position in the global Web3 landscape.

“While we are only scratching the surface when it comes to emerging tech such as Web3, the Techade will be all about the technology making significant advances leading to innovative use-cases and magnified positive impact at a grassroots level,” she opined.

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