India poised to become web3 powerhouse: expert

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As a seasoned crypto investor with roots deeply embedded in India’s tech landscape, I wholeheartedly concur with Sanjay Saxena’s perspective. The nation’s potential as a web3 powerhouse is undeniable, and it’s not just about the numbers – 750 million active internet users, or the fact that IT accounted for 7.5% of its economy in 2023. It’s about the spirit, the youthful energy, and the relentless pursuit of innovation that I’ve witnessed firsthand during my decades-long journey in this space.

In exclusive comments to crypto.news, a blockchain and artificial intelligence expert discussed why he believes India is set to become a web3 powerhouse.

India has consistently demonstrated its proficiency in technology, hosting more than 750 million active internet users as of January 2024. In the year 2023, the thriving Information Technology sector contributed about 7.5% to the nation’s economy, which was approximately $3.9 trillion.

Showing stronger digital competitiveness than all other BRICS countries apart from China, with a score of 60, India demonstrates its position as a leading force in global IT. This strong foundation paves the way for the country to foster growth in the emerging sectors of web3 and blockchain technology.

Yet this notion does not stem out of thin air. India is already home to over 1000 startups that are actively exploring web3 and blockchain technologies. Some estimates expect the nation’s web3 market to be valued at over $1 billion by 2032.

As an analyst, I’d rephrase it this way: Given my analysis, the growth is likely fueled by India’s predominantly youthful demographic. Sanjay Saxena, co-founder and CEO of CIFDAQ – an AI-driven blockchain network, underscores this point by revealing that India’s proportion of global web3 developers has significantly increased from a mere 3% in 2018 to a substantial 12% as of 2023.

“India is fostering a fresh wave of tech-skilled young people. A significant number of developers in this scene are aged around 20 to 22, showcasing the vibrant youth spirit fueling India’s web3 innovation. This was shared by Saxena during an interview with crypto.news.”

Leading educational establishments in India, such as the Indian Institutes of Technology (IITs) and the National Institutes of Technology (NITs), have been trailblazers in incorporating cutting-edge technology-focused programs. As early as 2018, they began offering courses on blockchain and related web3 technologies.

Saxena outlined how these projects aim to develop a proficient workforce, enabling India to effectively confront the hurdles of a future characterized by decentralization.

Additionally, it’s worth noting that the government has demonstrated a willingness to incorporate blockchain technology into their operations. This is apparent through various projects such as the Central Bank Digital Currency initiative, which seeks to establish a blockchain version of the Indian rupee, and the Ministry of Electronics and Information Technology’s efforts to develop a comprehensive blockchain system framework.

Furthermore, more than half of the Indian states are currently investigating different blockchain projects, according to Saxxena.

Some notable examples include the state of Tamil Nadu’s blockchain backbone initiative, a blockchain-as-a-service infrastructure that aims to secure and ensure the integrity of critical documents and data. Meanwhile, the state of West Bengal’s NFT-based land mutation program was the first of its kind to create 50,000 NFTs to represent one million property records.

India’s private sector is actively embracing the use of blockchain technology. For instance, Tech Mahindra, a prominent IT company operating in over 90 countries, introduced a “Stablecoin Service” solution designed for financial institutions globally, aiming to streamline and secure digital transactions. Furthermore, conglomerate giant Reliance is integrating blockchain into its supply chain operations.

A prominent tech company, Infosys, has crafted blockchain solutions tailored for banks and insurance firms, with the goal of enhancing operations efficiency and minimizing instances of fraud.

Despite progress, it’s crucial to acknowledge ongoing hurdles, as the web3 sector yearns for more defined regulatory guidelines. At present, the Indian government is actively working on establishing and enforcing regulations that could foster the expansion and promise of blockchain technology.

Despite frequent requests from important figures in the industry, unclear tax regulations continue to persist, creating operational difficulties for web3 startups, as Saxena points out. This issue not only affects the crypto trading market, which has been reportedly shifting to foreign platforms, but also leads to a significant loss of skilled professionals, often referred to as a “brain drain.”

Many virtual digital asset companies and experts are moving to “more advantageous foreign locations,” as Saxena emphasized, further noting:

“Moving this workforce away from India doesn’t just deprive us of skilled personnel, it also weakens our capacity to become a leading center for technological advancement and digital innovation.”

To tackle this issue, Saxena advocates that the government should consider providing tax breaks and prioritize infrastructure advancement. He emphasizes that an effective blend of a talented workforce, robust ecosystem, advantageous demographics, educational programs, government assistance, innovative thinking, and community participation builds a powerful argument for India’s rise in the web3 sector.

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2024-08-12 13:15