India’s Web3 scene has moved far beyond the early days. With more than a thousand startups now in the space, it has grown into the fastest-developing Web3 developer community in the world. Just to put things in perspective, Web3 startups in India raised more than $564 million in funding in 2024 alone. That’s a 43% jump in deals compared to the previous year. And more interestingly, almost 1 in 5 new Web3 developers worldwide are Indians. At this rate, by 2028, India is going to surpass the U.S. to take the top spot for developer hubs in the world.
These numbers point towards a maturing and self-sustaining ecosystem. Hackathons, bootcamps, and communities are now everywhere, helping the next generation of developers to build solutions for some of the real-world problems, like fixing supply chain messes, improving governance, or even improve grassroots-level financial inclusion.
With India’s Web3 ecosystem having such an immense impact on the economy, we must lead, not follow, in shaping Web3 regulations.
Industry experts anticipate that the Web3 ecosystem could contribute $1.1 trillion to India’s GDP by 2032. That's about 15% of the GDP Targets. This could be a game-changer for sectors like banking, health, education, and logistics. For example, blockchain technology can change the way land registries are done, make cross-border payments cheaper and faster, and enhance transparency in public welfare schemes.
A specific example would be the gaming sector. Web3 games in India are already generating $220 per user on average (nearly double what the Web2 games make). About 38% of gamers have tried Web3, with a 60% retention, which is a high metric for gaming. This puts the country in a unique position to set global user experience and monetization standards.
India is well-positioned to shape its own direction when it comes to digital policy and regulation. While there are lessons to pick up from how nations like the EU or the US have approached Web3 regulations, their systems were built for very different societies, with different priorities and challenges.
Our challenges and our goals are not the same. We’re focused on things like financial inclusion and making digital access affordable for everyone. That means we need solutions designed with India in mind. If we create policies that are rooted in local needs but forward-looking and open to innovation, we can do more than just support our own growth. We can offer a framework that other developing nations may look to as a model.
If India wants to actually lead in the Web3 space, it can’t just rely on the usual government playbook. There’s been some impressive groundwork, with initiatives like the National Blockchain Framework and the Centre of Excellence in Blockchain Tech definitely showing intent to innovate.
However, with India’s aim for a real leadership role in the Web3 space, the vision needs to get bigger. One important step is to set up a dedicated regulatory authority for blockchain and digital assets, bringing in technologists, legal experts, and, seriously, voices from the user community. You need a mix of perspectives to keep regulation in step with the pace of technology.
Collaboration between the public and private sectors is just as critical. If both sides work together, we might see open-source blockchain solutions running core government services someday. That could fundamentally change how public systems operate, and that is the kind of impact India should be aiming for.
More importantly, investing in education and upskilling, particularly in regional languages, is crucial for broad-based adoption. India should also prioritize interoperability and open standards, ensuring smooth integration between global platforms and domestic systems.
India has already proven to the world that we can build scalable digital systems. UPI and Aadhaar are just some of the examples. Now Web3’s on the table, and it’s our turn to build something that isn’t just for tech enthusiasts or those with deep pockets. If we get this right, we’re talking about a digital economy that actually works for regular people. The choices we make now will set the tone for decades.
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