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India's $1 Trillion Web3 Industry to Boost $5 Trillion Economy Goal

India is well on its way to achieving its goal of becoming a $5 trillion economy, thanks in part to its untapped $1 trillion web3 industry.

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As one of the top five countries for both crypto and DeFi adoption, the crypto sector in India saw $30.5 billion in funding in 2021.

According to the World Bank's December report titled "Navigating the Storm," India is better prepared to weather global economic downturns than any other emerging market. Policy reforms and consistent foreign direct investment flows have protected the Indian economy from volatility in global portfolio flows. At present, sectors such as IT, cloud services, big data, AI, and the Internet of Things contribute up to $200 billion to the nation's GDP.

A report by the US-India Strategic Partnership Forum titled "India's $1 Trillion Digital Asset Opportunity" highlighted the potential for web3 infrastructure to provide $1.1 trillion worth of economic growth to India's GDP over the next decade. India is already showing signs of technological adoption and job creation in the sector.

The "Indian Web3 Startup Landscape" by NASSCOM reported that $30.5 billion in venture capital funding was invested in the blockchain and crypto sector in 2021, and there are now over 450 web3 startups employing more than 75,000 professionals in India. The market is expected to grow 25 times by 2028, with an additional 50,000 jobs projected by 2025.

Top Five Countries for Crypto Adoption and Ranking Sixth for DeFi Adoption

According to a Chain analysis report, India ranks in the top five countries for crypto adoption and is ranked sixth for DeFi adoption. The nation's strong performance in these areas, coupled with the potential for significant economic growth through web3 infrastructure, positions India as a leader in the global market. As the fifth-largest economy in the world, following the US, China, Japan, and Germany, India has the potential to make a significant contribution to the global economy through its thriving web3 industry.