The Web3 sector is projected to create an employment base of 2 million high paying direct jobs in India within the next decade, with a 3 times multiplier on indirect jobs, according to a report by Primus Partners Pvt Ltd (Primus) – a management consulting services provider.
The report titled “Unlocking the Web3 Potential: India’s Journey from a Talent Exporter to a Product Powerhouse”, further indicates that India stands at the forefront of this technological revolution, equipped with the necessary elements to emerge as a dominant force on the global stage.
India is home to more than 900 enterprises in the Web3 sector, accounting for 11 per cent of the global Web3 developer community in 2022, securing its position as the third-largest talent pool of developers on a global scale.
Shravan Shetty, Managing Director, Primus Partners, said, “As we witness the evolution of Web3, its potential for transformative growth becomes increasingly evident. Our study thoroughly explores this expanding landscape, offering valuable insights that illuminate the path forward for India with strategic attention to coordinated global efforts, robust domestic legislation, heightened awareness, and a nurturing business environment.”
Crypto adoption
According to Chainalysis, India leads in grassroots crypto adoption globally and ranks as the second-largest market in terms of raw transaction volumes in 2023, demonstrating a thriving Indian market. This growth is propelled by a thriving start-up environment, an abundant talent, widespread internet accessibility, digitally adept population, and an increasing interest in Web3 technologies, the report noted.
Despite significant growth in India’s Web3 sector, challenges persist in the form of taxation issues and Ease of Doing Business (EODB) hurdles. The report highlights that the high TDS rate introduced by the Finance Act of 2022 has led to a shift of trade to foreign platforms and the grey market, undermining consumer protection efforts of compliant Indian platforms.
The report advocates for a recalibration of the tax framework, emphasising that taxation should support compliance and encourage participants in monitored transactions, rather than driving them away. It underscores the importance of clear guidelines and specific regulations for Web3 businesses, aligning with Startup India recognition.
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Published on November 30, 2023
