Web3 in India- A Glimpse Into India’s NFT landscape
Totality Corp
Experience technology, design, and content like never before, and keep coming back for more!
NFTs (Non-Fungible Tokens) now have the whole world in their grip and India is no exception. With rising knowledge of NFTs and increasing involvement from influential figures in the space, Indians are starting to wake up to the possibilities that NFTs open them up to. That being said, what does India’s NFT terrain look like??
The Indian NFT landscape
If you are anywhere between the 14 and the late 30s age range, chances are you’ve heard of NFTs or crypto. The people part of the GenZ and the Millenial generation form a huge potential crypto market in India. Since the majority of these demographics are already into gaming and entertainment, they are a market primed and ready for web3-based games and NFTs.?
NFTs have proved themselves to be of interest to multiple sectors across the nation. Most prominently, the multi-billion dollar gaming sector. Indian companies have started getting in on the NFT action. For instance, NODWIN Gaming and RageFan collaborated to create Chess NFTs for the Chess Super League (CSL) in the eSports sector. Even the blockchain-based Indian investment firm Avisa Ventures has started collaborating with game developers to build blockchain-based games for their consumers.
Sports personalities have started releasing their tokens as well, starting with wicket-keeper batsman Dinesh Karthik, who became the first Indian Athlete to release his own NFT in November of last year. Soon he was followed by other big names like Mary Kom and Virat Kohli. There has also been activity from prominent figures from the Bollywood industry, with personalities like Amitabh Bachchan and Salman Khan releasing their line of digital tokens in 2021. Multiple brands and celebrities are following suit as well.
India’s broad scope in terms of technical workforce and a large digitally connected population makes it a potential frontrunner in the NFT space. There are about 11 NFT companies with headquarters in India, closely behind the US and Singapore.?
Abhay Agarwal, founder, and CEO of Colexion, Asia’s largest blockchain-based NFT marketplace, says that India’s NFT marketplaces alone make up 5.02% of all NFT marketplaces in the world. This, combined with the fact that celebrity-led NFTs have already started amassing a huge following further reinforces India’s potential as a top horse.?
A couple of things to keep in mind
If you wish to enter India’s NFT space, be it as a creator, investor, etc., it is crucial to be aware of the legal provisions surrounding crypto income in India. At the moment, legally speaking, things are pretty unclear and unstable. It was decided that according to the Finance Act 2022, the profits gained from cryptocurrency sales would be taxed at a 30% tax rate. Crypto received as gifts would be taxable as well. This Act also makes tax deductions very restrictive- apart from the cost of the acquisition of cryptocurrency, no other expense can be considered for deduction while calculating income for taxation.?
At the same time, there is yet to be a clear conclusion regarding the very legality of trading NFTs under the Securities Contract Regulation Act of 1956. There are many legal questions regarding NFTs, but there are only a few answers.?
Though India has 11 NFT companies (the third highest in the world), NFTs are yet to amass a huge national following as of yet. As impressive as it may be in terms of technological presence, according to research by NFT Club, India showed poor interest rates with just 254 searches per 1,00,000 people.?
India might have the world's second-largest digitally connected population, however, the majority of the population still exhibits hesitation when it comes to digital assets. Web3 is still largely unknown, or rather unexplored in India. For that reason, as high as the market potential may be, it is largely untapped because the Indian population is yet to embrace the Web3 phenomenon.
领英推荐
All that said, it is crucial to understand the Indian NFT scene and gather information beforehand so that you can navigate the terrain more effectively. Having a detailed understanding of NFTs, how they work, how they can be monetised, how they are to be filed and declared for taxes, copyright, etc. will help keep you in the clear, save a lot of avoidable stress down the line, and make the most out of this venture.