A 10-year forecast of the Indian digital currency industry predicts an impressive growth rate that will make it one of the largest in the world, according to a new report.
The report was made public at the Entrepreneur Web 3 Summit in Bengaluru, with high-ranking players in India’s Web 3 ecosystem in attendance. Per the report, the country’s metaverse industry is expected to record double-digit growth rates with a 39.2% spike to achieve a valuation of $33.9 billion.
In terms of blockchain, India’s local ecosystem is anticipating a leap from under a billion dollars to nearly $4 billion in 2025. According to the report, the giant leap for blockchain is a result of the increasing wave of government and private commitments to increase the adoption of the technology.
The National Institution for Transforming India (NITI) Aayog launched a blockchain learning module with a focus on deepening the talent pool in the country. Similarly, the India Blockchain Alliance (IBA) and the India Blockchain Forum (IBF) have all launched DLT learning courses for Indian residents.
Non-fungible tokens (NFTs) were not left out, with the report predicting double-digit growth for digital collectibles in the country. By 2028, India’s NFT market could be the leader in the Asian continent if certain conditions are met, according to the report.
“In India, the market size of NFT is expected to record a CAGR of 61.6 per cent, increasing from $3.3 billion in 2021 to reach $27 billion by 2028,” the report read.
Other areas of growth identified by the report include play-to-earn gaming and decentralized finance (DeFi), which it noted could add significant value to India’s GDP. Presently, around 450 digital currency startups are operating in India, with this number expected to balloon in the coming years.
“Web3 technologies are set to transform the internet as we know it, creating a more democratic and fair space for users and businesses. As venture capitalists begin to invest in Web3 companies, we can expect to see even more growth and innovation in this space,” the report noted.
Regulations might ruin the party for India’s Web 3 ecosystem
India’s hard stance towards digital currencies and the underlying technology might stifle the growth of the budding industry, given the mass exodus of startups in the space. Indian firms have been seeking new homes given the perceived draconian nature of India’s tax laws.
At the moment, investors in the digital currency space are expected to pay 30% taxes on gains in addition to a 1% TDS on all transactions. Despite the pleas of stakeholders for a reduction of the tax burden, the government remains resolute in “choking the industry to death” via taxation.
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