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Web3, digital assets could add $1.1 trillion to India’s GDP in next 11 years: Report

Web3, digital assets could add $1.1 trillion to India’s GDP in next 11 years: Report
Photo Credit: Pixabay
6 Dec, 2021

Digital assets and related businesses can add as much as $1.1 trillion to India’s gross domestic product (GDP) in the next 11 years, said a new report by Singapore-based crypto exchange CrossTower. The company partnered with the US-India Strategic Partnership Forum (USISPF) for the report, which said that the global digital asset market has grown from approximately $1.5 billion in 2013 to $3 trillion in 2021.

It also noted that web 3.0, which includes applications build around concepts of the third generation of the Internet, will add $1.1 trillion to India’s GDP only if the right policies and regulatory framework are put in place. “India is poised for growth to become a $5 trillion economy by 2024-25 as envisioned by Prime Minister Narendra Modi. Digital assets are expected to have tremendous potential in the next 11 years across countries, due to their rapid adoption. They are expected to help India achieve the GDP of a $5 trillion economy,” the said Mukesh Aghi, President and chief executive officer (CEO) of the USISPF.

The report comes days after the Indian government published a National Strategy on Blockchain, which is meant to facilitate the development of blockchain technology and web 3.0 applications in the country. The 52-page document calls for the formation of a National Blockchain Framework, which could be used for research and for speeding up development of blockchain-based platforms.

“Highly critical for the success of economic growth, however, will be a thoughtful, deliberate framework and action plan to foster innovation in Web 3.0 and digital assets. If we analogize the development of the internet to that of digital assets and Web 3.0, it would be useful to note why the US succeeded with the internet compared to other major countries,” the report said.

Interest in the space has also been driven by a growth in the interest in cryptocurrencies as assets. The Finance Ministry has also been formulating a bill to regulate cryptocurrencies, which is expected to be tabled during the current session of the Parliament, which started on November 29.