New Delhi, Dec 6 (IANS) By adopting Web 3.0 and Blockchain-based technologies, India has the potential to add $1.1 trillion of economic growth to its gross domestic product (GDP) by 2032, a new report showed on Monday.
‘Web 3.0′ envisions a decentralised future where users and machines are able to interact with data via asmart, digital contracts’ over peer-to-peer networks, without the need for Big Tech.
According to the report by crypto and digital asset exchange CrossTower in partnership with US-India Strategic Partnership Forum (USISPF), the digital asset economy’s value to India’s GDP will grow at 43.1 per cent CAGR (compound annual growth rate) — from $5.1 billion in 2021 to $261.8 billion over an 11-year period, resulting in a $1.1 trillion contribution to India’s GDP.
Digital asset market capitalisation was nearly $1.5 billion in 2013, and stands at about $3 trillion today.
According to the report, most of $1.1 trillion in the total economic growth in the next 11 years can come from ancillary digital asset-related businesses that are yet to be invented.
“India is poised for growth to become a $5 trillion economy by 2024-25. 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 $5 trillion economy goal,” said Dr Mukesh Aghi, President and CEO of USISPF.
According to the findings, the adoption rate of digital assets (as reflected by accounts opened on centralised cryptocurrency exchanges) is growing nearly twice as fast as that of the Internet.
It took the Internet approximately 7.5 years to go from around 100 million users to one billion users.
“The same growth at cryptocurrency exchanges will take about four years. From digital art to ticket sales, music, collectables, luxury items and gaming, non-fungible tokens (NFTs) could transform the way people interact day-to-day. While still nascent, NFTs are projected to emerge into a market of $1 trillion or more,” the report mentioned.
“With the right policies and regulatory framework, India’s regulators can bring safety, combined with hope and prosperity to India,” said Kapil Rathi, Co-founder and CEO, CrossTower.
The government-related Blockchain projects are estimated to drive close to $0.1 billion of GDP to India in 2021, ramping up to $5.1 billion in 2032.
The report projected that digital identity could contribute $8.2 billion to India’s GDP in 2032.