India’s Web3 growth sees 224% investment surge in 2024

India's Web3 ecosystem has experienced remarkable growth despite regulatory challenges, with investments increasing by 224% in 2024 compared to the previous year.

This expansion is driven by Gen Z developers, gaming innovations, and a robust startup environment, even as the country maintains stringent crypto tax policies.

According to the India Web3 Landscape Report 2024 by Hashed Emergent, India now accounts for 12% of global Web3 developers, up from 5% a decade ago, making it the second-largest developer base after the United States.

The report highlights that 80% of Indian blockchain developers are aged between 18 and 27, with Solana (CRYPTO:SOL) being the preferred blockchain for projects in DeFi, payments, AI, and SocialFi.

Emerging platforms like Ton and Aptos (CRYPTO:APT) are also gaining traction.

While funding opportunities such as hackathons support early-stage projects, Indian developers face challenges like lower salaries compared to global standards.

Web3 gaming projects also struggle with high customer acquisition costs and limited gameplay quality beyond financial incentives.

Tak Lee, CEO of Hashed Emergent, noted that some games are now prioritising quality before integrating blockchain mechanics.

Despite these hurdles, India’s Web3 sector attracted significant investments from local funds, ecosystem initiatives, and corporate venture arms of global exchanges.

However, the lack of growth capital and unclear regulatory frameworks remain barriers for startups seeking large-scale funding.

Entrepreneurs increasingly turn to crowd sales to finance their projects.

The report also underscores the evolving nature of crypto investments in India.

Small-scale investors dominate the market, with most traders holding positions below $12 while leveraging trades up to 20x.

Female participation in futures trading remains low but shows potential for growth.

The report calls for reforms to India’s crypto tax policies and clearer regulations to foster innovation.

“India must address stakeholder concerns through effective regulation to enable the Web3 sector to thrive,” it states.

Recent measures like blocking unlicensed crypto exchanges have pushed users toward decentralised platforms and domestic exchanges regulated under Indian law.