Web3 Ecosystem Will Add USD 1.1 Trillion To India's GDP

Web3 Ecosystem Will Add USD 1.1 Trillion To India's GDP

A new report by Nasscom states that India has emerged as a leading global player in the Web3 market. Web3 investments in the country grew 37 times from the beginning of 2020 to the first quarter of 2022. It is estimated that USD 1.1 trillion in Web3 economic value will add up to India’s GDP by 2032.

India Emerges As the Leading Global Player in Web3 Market

Nasscom published a report titled "The India Web3 Startup Landscape: An Emerging Technology Leadership Frontier" on 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. 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 in the first half of this year was more than 450, having raised more than USD 1.3 billion since 2020. The average size of the deal in 2021 was about USD 10 million, and there were more than 70 active institutional investors in the Indian Web3 space in 2021.

"Web3 focus grew rapidly in India from 2015-17 with the launch of Ethereum, in line with global growth, but grew rapidly in 2020-21 after the cryptocurrency ban was lifted," the report said.

"Web3 investments grew 37x since the start of 2020 through Q1 2022." In addition, the report estimates that USD 1.1 trillion in Web3 economic value will be added to India’s GDP by 2032.

The Reserve Bank of India (RBI) imposed a banking ban on the crypto industry in March 2020, which the Supreme Court lifted in March 2020. In May last year, the RBI confirmed that its crypto banking ban was no longer valid. But the central bank of India continues to have "major concerns" about cryptocurrency.

"However, Indian Web3 startups see major roadblocks in scaling up due to a lack of regulatory clarity and policy direction, which risks India’s competitive advantage," the report details.

"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 Ghosh, President of Nasscom, said:

"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 technologies 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.