India’s Web3 ecosystem has over 400 companies, Karnataka emerging as an industrial hub
The government has yet to announce any new rules or change its approach to the Web3 industry after making registration with the Financial Intelligence Unit – India (FIU-IND) mandatory for crypto companies last year. Despite the country’s gradual approach to exploring the sector, the number of Web3 companies in India is gradually increasing. In a recent report, the Bharat Web3 Association (BWA) notes that India’s Web3 ecosystem already includes more than 400 companies, while one state has emerged as the industrial hub for the country’s crypto sector.
The report reveals that Karnataka has emerged as the hotspot for Web3 companies, with at least 97 Web3 companies. Other states where the number of Web3 companies in India is increasing are Maharashtra, Telangana, Haryana and Uttar Pradesh.
Meanwhile, blockchain solutions emerged as the Web3 vertical with the largest concentration of companies operating in it, the report said. Currently, 79 companies have been identified by the BWA to conduct research and development work around the use cases of blockchain technology.
However, this development seems logical considering that blockchain exploration is a Web3 area in which the government has shown great interest. India’s IT ministry has launched a range of blockchain stacks that will allow developers to safely experiment with the technology. Even TRAI has relied on blockchain technology to blacklist spam callers.
A total of 18.7 percent of Web3 companies in India are focused on developing blockchain-based solutions to improve areas such as supply chain management, healthcare and fintech. “We hope to quantify and highlight the startups that are contributing to India’s silent Web3 revolution,” said Dilip Chenoy, Chairman of BWA.
After blockchain services, the next most popular Web3 area is virtual digital asset exchange activities. A total of 42 Web3 brands work on VDA transactions – representing 42 percent of the total 422 companies.
Blockchain infrastructure companies, decentralized finance, gaming and entertainment are other areas that are attracting entrepreneurs looking to build Web3 companies, the report said.
“At Meity, we are committed to nurturing a Web3 ecosystem that is conducive to technological advancement while ensuring robust digital governance. The emergence of Web3 technologies provides us with an opportunity to develop use cases that serve the public interest through greater transparency while promoting an inclusive digital economy,” MeitY Secretary S Krishnan said in a statement included in the BWA report. “I believe Indian innovators have the know-how to not only navigate this emerging space, but also the ability to lead it,” he added.
