World-wide, crypto and web3 companies brought up over $30 billion in 2021 and are set for a user community of 1 billion by 2030, the report states.
A collection of critical elements positions india at the forefront of international web3 transformation, said a report by Nasscom, a non-profit umbrella organization of the $227-billion Indian Technology Sector.
It designates the widespread adoption of new technology development, vast talent pool, and robust entrepreneurial ecosystem as the major drivers of the nation’s push for a major role in the global web3 industry.
India Web3 Landscape
Launched in Bengaluru last week, the report – The India Web3 Startup Landscape: An Emerging Technology Leadership Frontier – has been prepared jointly by Nasscom and a Web3 venture capital firm, Hashed Emergent.
It says India has 450 Web3 startups, and four of them are unicorns. Also, these entities received $1.3 billion of venture funding in two years, from 2020 to 2022.
Even though 60% are enlisted outside India, not less than 30% have come up in the past year. And several of them have DeFi, NFT, and gaming projects. DeFi activities were especially high, with $88 billion worth of value received on-chain in 2021, the nasscom study indicates.
“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,” Debjani, President, Nasscom, said while releasing the report in Bengaluru.
The report throws a spotlight on India’s vast Web3 and blockchain talent pool by saying it accounts for 11% of the global market, making it the third largest.
“India’s Web3 talent pool is growing at the fastest rate worldwide, at around 120 percent likely in the next 1-2 years,” the report says.
Globally, crypto and Web3 firms received $30.5 billion of venture capital in 2021. The user base, currently 320 million, is expected to reach 1 billion by 2030.
The nasscom document emphasizes the detach between the soaring web3 ecosphere and the lack of strategic system to promote and drive the growth in the crypto and web3 subsector. While government policies encourage blockchain technologies, it’s not the same for crypto.
Recently, District Police in India initiated a Polygon-based dispute filing portal to minimize manipulation by Police personnel. At the other end of the spectrum, crypto trading has been heavily burdened with many taxes.
“the lack of policy clarity around virtualized assets (vdas), leading to a lack of trust in founders and innovators, thereby forcing them to move their base to other countries, is not only taking the market away but also the critical talent and expertise needed in this area,” it points out.