India’s Web3 Growth: Developers, Gamers, and Investors Flourish | 2025
India’s Web3 Growth: Developers, Gamers, and Investors Flourish
India’s role in the global Web3 ecosystem has seen remarkable growth, particularly in software development, gaming, investments, and startup funding. Despite the absence of locally tailored crypto regulations, India’s contribution has increased year-on-year. According to the India Web3 Landscape Report 2024 by Hashed Emergent, India’s share of global Web3 developers surged from 5% to 12% over the past decade, positioning it as the second-largest contributor after the United States.
Key Drivers of India’s Web3 Adoption
Speaking to Cointelegraph, Tak Lee, CEO and Managing Partner at Hashed Emergent, identified four primary factors propelling India to the forefront of global crypto adoption:
- Retail crypto transactions on centralized services
- Highest trading volumes
- Institutional adoption
- Retail DeFi transactions
The driving force behind this growth is the younger generation, with approximately 80% of all blockchain developers in India aged between 18 and 27. This demographic is crucial in shaping the future of Web3 technologies.
Preferred Blockchain Platforms
Indian developers are increasingly gravitating towards decentralized finance (DeFi), payments, artificial intelligence (AI), and SocialFi sectors, with Solana emerging as the preferred blockchain. Other platforms like Ton, Aptos, and Base are also gaining traction, fueled by the expanding presence of layer-1 and layer-2 ecosystems.
Challenges Facing Web3 Gaming Projects
Despite the promising growth, Web3 gaming projects in India face significant challenges. One of the most pressing issues is the extremely high cost of customer acquisition (CAC) required to onboard Web3 users. Additionally, many projects struggle to provide quality gameplay that goes beyond financial incentives, which is essential for retaining traditional Web2 gamers.
“Therefore, several of these games are now focusing on delivering high-quality experiences before integrating blockchain mechanics or tapping into the Indian gamers’ enthusiasm for real-money gaming (RMG),” Lee explained.
Investment Trends in the Indian Web3 Landscape
Investment in the Indian Web3 ecosystem has seen a remarkable 224% increase in 2024 compared to the previous year. This surge is attributed to various sources, including local funds, ecosystem funds, and corporate venture arms of leading exchanges. Lee noted that the lack of growth capital in the Web3 sector, coupled with the absence of traditional venture, growth, or private equity funds, poses challenges for Indian firms seeking to raise capital.
“The substantial growth in Web3 investments in 2024 signals a gradual recovery, with investors focusing on emerging areas of decentralized finance,” the report stated.
Barriers to Large-Scale Investments
Despite the positive investment trends, several barriers continue to hinder large-scale investments in India’s Web3 landscape. According to Tak, the slower-than-anticipated growth of some startups and unclear regulations and compliance requirements are significant obstacles. These factors contribute to a cautious investment climate.
Small-Scale Crypto Investments on the Rise
Interestingly, even within a high-tax environment on cryptocurrency, small-scale crypto investments have seen an uptick in India. Traders generally prefer small, frequent trades, with 96% maintaining positions of less than $12, leveraging an average of 11x-20x. Notably, female participation in futures trading is on the rise, with women representing 1 in 10 futures traders in India, indicating a growing opportunity for greater involvement.
Policy Recommendations for India’s Web3 Ecosystem
The policy wish list for the Indian Web3 community includes several critical recommendations:
- Establishing a regulatory framework for virtual asset service providers (VASP)
- Tax rationalization
- Streamlined banking and payment access for Web3 companies
- Exemptions from VASP regulations
- Clarity on existing regulations
Recent regulatory initiatives, such as the URL blocking of locally unlicensed crypto exchanges, have led to an influx of funds into the Indian Web3 ecosystem. However, the community continues to advocate for clearer regulations to foster a more conducive environment for growth.
Conclusion
In conclusion, despite the hurdles posed by India’s crypto policy landscape, the Web3 ecosystem is thriving. With a growing number of developers, gamers, and investors, India is poised to play a significant role in shaping the future of decentralized technologies. As the community continues to push for regulatory clarity and support, the potential for further growth remains promising.
