How India is shaping the blockchain ecosystem for the world as a leader
By Sakina Arsiwala
India at 75 stands tall as one of the world’s most promising economies that counts its young population, innovation and technological capabilities as among its most valuable assets. It is the second largest consumer of internet in the world, next to China, and is rolling out its carpet for 5G technology which is likely to start in the coming months. India has always used technology to solve its complexities and benefit society at large. Rapid transformation to a digital economy has shown the world how to leverage cutting edge initiatives like Digital India and e-governance for economic resilience. Today, the country stands on the edge of digital transformation, and it has a great chance to lead political formations in new technologies such as Web3, cryptocurrency and blockchain.
Since Web3 technology is new, concerns have been raised about its security, privacy and financial risks, which are valid and expected. At this point, it is rational to critically analyze and explore all viewpoints before concluding on the formation of a set of regulations. It is very encouraging that the Indian government took the right step by taxing crypto trading instead of pursuing a complete ban. This both keeps the space for dialogue and development open and also serves to keep India ahead in the global technology race. To contribute to the ecosystem of blockchain technology and its general application, the Indian government has launched a website as a hub for blockchain technology in India.
By the time India became a dominant force by developing a strong Indian Information Technology Enabled Services (ITES) sector, the West had already taken a giant leap in high technology by seizing or capturing the vast opportunities ushered in during the rise of Internet enabled technologies. As Web3 is still at a nascent stage worldwide, India has the best chance by any means necessary to set up a robust framework around Internet governance and commerce.
According to a recent FICCI-EY report, the opportunities for India in Web3, blockchain, crypto and NFT are immense. The report predicts that Web3 and blockchain are critical to India’s growth as an economic superpower, and could add $1.1 trillion to India’s GDP by 2032. Similarly, NFTs are projected to grow into a market of $1 trillion or more . It is important to note that India covered the distance from 100 million internet users to one billion in less than a decade. With opportunities knocking at the door, India cannot afford to miss the bus. There is a strict need for proactive policy-making around Web3 and new technologies. Moreover, having the right vision in place can prevent brain drain and migration of talent to other countries. The government must encourage Web3 entrepreneurs and support them in setting up and scaling their ventures for Atmanirbhar Bharat in this new space.
Additionally, the decentralized nature of crypto has empowered content creators who are now able to engage directly with audiences, earn and contribute to the development of India’s creative economy. The creator economy has recently grown to INR 1,300 crore as small, medium and global brands navigate the digital space and engage with content creators. India has strengthened its position in the startup space and is currently the third largest startup ecosystem globally. The great potential provides a huge opportunity for startups working in Web3. According to a NASSCOM report, more than 8 lakh jobs can be created in India in this sector by 2030, making it imperative to eliminate policy-related bottlenecks with a robust and clear framework.
India needs to decide on standards, guidelines and protocols to lay the foundation for the development and emergence of breakthrough technologies. With India becoming a key partner in global conversations, the country has a significant role to play as the world transitions to a Web3 ecosystem. India has the talent, resources and vision to be a leader in the global technology space. The time is right and opportune for Indian policymakers to accelerate India’s progress in Web3 with a clear roadmap for the opportunities ahead.
The author is co-founder, Taki
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