Job boom ahead: Web3's promise to power India's youth, to create 2.2M jobs by 2032

The Indian startup landscape has been a hotbed for innovation, and the recent Primus Partner (a business and management consulting firm) report sheds light on the significant role India plays in the web3 domain. Web3, often referred to as the next evolution of the internet, is poised to transform the digital landscape globally. The article explores the key findings of the Primus Partner report, delving into the impact of web3 on India's economy and the challenges it faces.

What is web3?

Web3 represents the next phase of the internet, primarily built on blockchain technologies. Unlike its predecessors, web3 utilises a decentralised network, enhancing security and transparency in data and service hosting.

India's dominance in web3

The 'Primus Partners' report emphasises India's pivotal role in the Web3 revolution. With over 900 enterprises contributing to 11% of the global web3 developer community in 2022, India stands as a key player in shaping the future of the digital realm.

Economic impact and job creation

The report forecasts that web3 has the potential to generate 2.2 million jobs in India over the next decade. Additionally, it predicts a substantial $1.1 trillion contribution to India's GDP by 2032, showcasing the significant economic impact of web3.

Challenges on the horizon

While the promises of web3 are immense, challenges loom on the horizon. The findings highlight taxation issues and the ease of doing business as persistent obstacles. The report suggests the need for adjustments in the tax framework to foster compliance and discourage the shift to foreign platforms.

Regulatory framework and user security

Clear guidelines and specific regulations are deemed essential for web3 businesses. The study underscores the importance of aligning regulations with Startup India recognition to ensure a conducive environment for growth. Additionally, limitations in access to UPI and banking rails pose challenges, leading users to opt for foreign platforms, risking their payment security.

Global projections

The report envisions web3's global contribution reaching 8% of the GDP, amounting to a staggering $13 trillion by 2030. Despite the attention garnered by cryptocurrencies like Bitcoin and Ethereum, the true potential of web3 extends far beyond speculative trading.

Bharat Web3 Association's initiatives

The 'Bharat Web3 Association', a key representative body for web3 companies in India, has proposed initiatives to foster development within the state of Karnataka. These include the creation of a sandbox environment, signalling a proactive approach to navigate the challenges.

Notable developments in the web3 space

In a noteworthy development, 'Huddle01' secured $2.8 million in a seed funding round from Hivemind. The startup aims to build a decentralised real-time communication network, highlighting the growing interest and investment in web3 technologies.

Homegrown venture capital firm 'pi Ventures' raised INR 22 crores in its second fund, earmarked for early-stage blockchain startups. This indicates a growing belief in the potential of Web3 to drive innovation and economic growth.

'Transak', a startup specialising in web3 payments solutions, successfully raised $20 million in its Series A funding round. This accomplishment underscores the increasing recognition and financial backing for ventures in the web3 space.

As India solidifies its position in the web3 landscape, it is evident that the potential for growth and innovation is immense. However, addressing challenges related to taxation, regulatory frameworks, and user security is crucial for sustained development. The web3 revolution is not just about cryptocurrencies; it's a paradigm shift in how we interact with the digital world.