Web3 devs, gamers, investors thrive despite India’s crypto policy hurdles

India's contribution to the global Web3 ecosystem has increased significantly over the years, with its share of global Web3 developers growing from 5% to 12% in the last decade. The country now has the second-largest number of Web3 developers, after the United States, with 80% of them being between 18 and 27 years old. The growth is driven by the younger generation, with many Indian developers preferring Solana as their go-to blockchain. Despite the lack of locally tailored crypto regulations, India has seen a significant increase in Web3 investments, with a 224% increase in 2024 compared to the previous year. The investments have come from various avenues, including local funds, ecosystem funds, and corporate venture arms of leading exchanges. However, Indian developers face challenges such as low salaries and high customer acquisition costs, which hinder the growth of Web3 gaming projects. The lack of growth capital and traditional venture funds also makes it difficult for Indian firms to raise capital, leading many to explore crowd sales as a funding option. The Indian Web3 landscape is expected to continue growing, with the country being a global hub for founders and developers, and home to the second-largest developer market and third-largest founder base globally. To support this growth, the report calls for reforms in crypto tax deductions and reporting, as well as federal guidance and tax implications, to incentivize the Web3 sector to grow and thrive. The Indian Web3 industry is seeking progressive regulation, including a regulatory framework for virtual asset service providers, tax rationalization, and streamlined banking and payment access for Web3 companies.