Why the time is now for India and Web3

This week the NEAR Foundation announced a partnership with Shemaroo Entertainment, a prominent leader in India's media and entertainment sector.? It is an excellent example of how blockchain technology has the potential to unlock new possibilities and create new revenue streams for the industry. Shemaroo will use the BOS, NEAR's scalable blockchain infrastructure and intelligent contract capabilities to devise new solutions and services for its user base, and tap into a Web 3 market that is truly exploding.?

The country is poised to be a significant player in the global Web3 ecosystem.?

According to a report from the Indian trade body? Nasscom, Web3 investments in the country grew 37 times from the start of 2020 to Q1 2022 and $1.1 trillion in Web3 economic value is projected to be added to India’s GDP by 2032.

These stats shouldn’t come as a surprise.?

India is the second-most populous country globally, with over 1.3 billion people, nearly half of whom are under the age of 25. Developers in India are building for a young community, creating what the youth want not only today but also in the future. The country's young and tech-savvy population makes it a fertile ground for Web3 development to scale exponentially.?

As well as this, the country's rapidly growing internet penetration and government initiatives to expand digital infrastructure contribute to this potential. India boasts over 450 Web3 startups as of H1 2022, with over $1.3 billion invested in the sector since 2020. It also ranks second in the Global Cryptocurrency Adoption Index, demonstrating the growing interest in Web3.

With over 10 million developers on GitHub, the country has the second-largest and fastest-growing contributor community globally and the fastest-growing share of Web3 developers worldwide. It’s no wonder that the number of Web3 projects in India and investment in the Web3 space is increasing. The combination of this extensive talent pool with the infrastructure of 5G implementation places India in a distinctive position.

What needs to happen for India to be a global Web3 leader???

More precise regulations need to be established and enforced to create a transparent understanding of India's government's approach to regulating Web3. While India is among the top Web3 adopters, the tax laws brought in during the Finance Act 2022 still need to evolve to support the ecosystem. Updated legislation and laws on Web3 will give companies and agencies the assurance they need to continue research and development efforts.?

There is still a need to create a comprehensive regulatory framework that fosters the growth and adoption of? technologies such as blockchain, decentralised applications (dApps), and cryptocurrencies. This framework should offer transparent guidelines for businesses and users, safeguard consumer interests, and deter illicit activities.

The absence of a transparent governmental approach to Web3 regulation in India has prompted many entrepreneurs to move to more Web3-friendly locations such as Dubai and Singapore, even though India continues to host a wealth of Web3 talent. According to a 2022 NASSCOM report, 60% of Indian Web3 startups were founded overseas but employed local technical expertise.?

We’re excited about India’s Web3 potential.

At the NEAR Foundation, we are actively incubating startups in India with the support of Arpit Sharma - our regional director. Collectively we are? helping to? boost blockchain talent development and innovation and are planning? to extensively engage with builders and bring our global programs such as NEAR Horizon to India.? This is the NEAR Foundation’s Web3 startup support? program that allows startups to interact? through a double sided marketplace application built on the NEAR Blockchain Operating System. The marketplace connects founders to people and organisations to help them turbocharge their growth, including over fifteen service providers, forty mentors and over three hundred backers.??

We identify and support entrepreneurs who plan to solve specific public problems via Web3 elements like the metaverse, NFTs, and cryptocurrencies. GameFi and DeFi are the two focus areas for the Indian market.?

In addition to the Shemaroo partnership? the NEAR Foundation has also completed its? first government use case in India -? with the Hindustan Petroleum Corporation Limited (HPCL) – a Government of India Enterprise with a Maharatna Status - offering purchasing order verification on chain.?

Many more business deals are in the pipeline and we are also working closely with various industry associations and regulatory bodies to bring awareness and enable them to create forward looking policies.

The NEAR Foundation is currently? working with think tanks such as ICRIER - which is aligned with India’s ministry of finance.? We are also engaging with Telecom Regulatory Authority of India (TRAI) on policies and regulations for metaverse and other non financial web3 tech? and connecting? We are also connected to FICCI and NASSCOM - leading industry bodies

All in all – as an aspiring welfare state, India cannot afford to ignore the potential economic and social benefits of our industry. With the right policy clarity and regulatory guidance, India could drive unprecedented innovation, economic growth, and social welfare for its citizens. Its government and businesses must work together to unlock the full potential of Web3 and capitalise on the benefits it can bring.