Primus Partners, a leading management consulting services provider, has unveiled a groundbreaking report forecasting the Web3 sector’s impact on India’s employment landscape. Titled ‘Unlocking the Web3 Potential: India’s Journey from a Talent Exporter to a Product Powerhouse,’ the report highlights India’s pivotal role in the Web3 revolution.
Key Findings:
- Job Creation: The Web3 sector is poised to generate approximately 2.2 million direct jobs in India over the next decade. This growth is expected to have a threefold impact on indirect employment.
- Global Talent Hub: India currently hosts over 900 enterprises in the Web3 sector, representing the third-largest talent pool of developers globally. In 2022, India accounted for 11% of the global Web3 developer community.
- Crypto Adoption Leadership: The report cites blockchain analysis firm Chainalysis’ assertion that India leads in grassroots crypto adoption globally, ranking as the second-largest market in terms of raw transaction volume in 2022.
Factors Driving Growth:
- Startup Ecosystem: India’s thriving startup environment contributes significantly to the growth of the Web3 sector.
- Abundant Talent: The availability of a skilled workforce has been a driving force in the sector’s expansion.
- Digital Literacy: Widespread internet accessibility and a digitally adept population contribute to the sector’s success.
- Interest in Web3 Technologies: The increasing interest in Web3 technologies further propels India’s position in the global landscape.
Transformative Potential Across Sectors:
The report identifies promising use cases of Web3 technologies in various sectors, including supply chain management, privacy in healthcare, education and experience certificates, voting systems, and identity management.
Challenges and Recommendations:
- Taxation Issues: The report highlights challenges in the form of taxation issues and ease of doing business, emphasizing the need for a recalibration of the tax framework to support compliance.
- Access to Digital Assets Ecosystem: Limited access to UPI and banking rails within the virtual digital assets ecosystem is noted, urging for a conducive environment and forward-thinking legislation.
- Clear Guidelines and Regulations: The report underscores the importance of clear guidelines and specific regulations for Web3 businesses, aligning with Startup India recognition.
Looking Ahead:
“As we witness the evolution of Web3, its potential for transformative growth becomes increasingly evident,” states Shravan Shetty, Managing Director at Primus Partners. The report advocates for coordinated global efforts, robust domestic legislation, heightened awareness, and a nurturing business environment to propel India’s journey in the Web3 landscape.
In conclusion, the report emphasizes the need for a collaborative blueprint, global taxonomy, minimum standards, flexibility, and coordinated monitoring to support comprehensive domestic legislation for Web3 businesses. It suggests a principle-based approach, clarity in coverage, identification of regulators, and the empowerment of self-regulatory organizations.