Source: The Economic Times
Transforming Commerce, Innovation & Digital Economies Across India
Web3, a next-generation internet built on the principles of decentralisation, blockchain, and encoded economic models, is reshaping digital commerce globally. This revolution has evolved from tech communities into a mainstream business movement, driving innovation across startups, enterprise functions, and public infrastructure in India. As the adoption of digital technologies skyrockets and Web3 infrastructure matures, Indian enterprises are aggressively integrating this shift to disrupt traditional business models, attract capital, and build a growing ecosystem.
What is Web3?
Web3 is an open, permissionless, decentralised version of the internet that enables user-centric ownership of data, assets, and digital identities using blockchain, smart contracts, tokenisation, and decentralised applications. Unlike Web2, which is dominated by centralised platforms, Web3 empowers individuals to be the dominant force and to have programmable economic incentives.
An Evolving Landscape of Web3
India’s Web3 ecosystem is growing rapidly, which has established the country as a Web3 hub globally:
- India has over 1,200 Web3 startups operating across sectors such as DeFi, gaming, infrastructure, and NFT services.
- Web3 developers in India increased by 4.7 million in 2024, capturing approx—17% of the new global Web3 developer hub by 2028. (Source: Entrepreneur India)
- India is at the top of the chain adoption ranking in 2023, among the other 150+ countries and 35+ million trading accounts on local exchanges.
- The Indian Web3 investor and trader remains active across assets such as Bitcoin and Ethereum, with the majority under 35.
Funding and Investment
| Year | Total Funding in USD | YoY Change |
| 2023 | $250 million | – |
| 2024 | $564 million | +109% |
(Data source from Entrepreneur India)
Key Opportunities for Indian Businesses with the Rise of Web3
Decentralised Finance (DeFi)
Decentralised Finance eliminates intermediaries in lending, borrowing, and asset exchange. For Indian fintechs and banks, implementing DeFi permits:
- Reduction in the transaction costs
- Faster settlement timings
- Automated computerised finance operations
Web3 Gaming and Entertainment Sector
For the Indian media and entertainment sector, the Web3 gaming company provides revenue streams through token rewards, branded in-game resources, and cross-platform engagement. The merging of Web3 gaming with play-to-earn economics and Non-Fungible Tokens (NFTs), a digital asset with verifiable ownership:
- Web3 gaming is growing rapidly in India, with a rapidly growing share of users compared to traditional models.
- Hybrid gamers are transitioning completely to blockchain gaming ecosystems.
Real World Asset Tokenisation
It converts physical assets such as real estate, commodities, and art into digital assets on the blockchain, thereby increasing liquidity and enabling fractional ownership. The impacts on the business are:
- Broader investment accessibility for small investors
- Automated compliance through smart contracts
- New investment vehicles, along with traditional portfolios
Supply Chain and Transparency
Blockchain increases the transparency in the supply chain, which is crucial for India’s agriculture, pharmaceutical, manufacturing, and export industries. Enterprises, such as logistics organisations, can leverage a decentralised account to improve operational efficiency and compliance. Its key benefits are:
- End-to-end traceability
- Reduction in the rate of fraud and piracy
- Real-time auditing
Government Support in Web3
The Indian government has recognised the potential of decentralised tech or Web3 in India, and the Ministry of Electronics and IT (MeitY) established:
- The National Blockchain Framework (NBF) is to promote blockchain-based applications for citizen services.
- The National Informatics Centre (NIC) is to launch a Centre of Excellence in Blockchain Technology.
On the other hand, state governments also have active involvement, such as:
- Telangana launched a Web3 regulatory Sandbox for startups in 2023 as an incubator.
- Tamil Nadu is exploring Web3 for the education and emerging and innovation-led sectors.
- Maharashtra is issuing caste certificates on the Polygon blockchain, creating an adoption strategy, and assessing startups.
This proactive government approach is creating a powerful growth engine for the entire Indian Web3 ecosystem, powering the innovation pipeline for the foreseeable future.
Startups Implementing Web3 Technologies in India
In India, the number of startups that implement Web3 technologies is increasing rapidly. The investments in these startups have also risen significantly and reached over $1.3 billion by the first quarter of 2022. These startups are:
- FanCraze
- Loco
- Netset Software
- GuardianLink
- Polysynth
- InstaDapp
- Biconomy
- Arcana
- Crictos
- Lysto
How are Indian corporates using Web3?
Banking, Financial Services & Insurance
Indian BFSI players are experimenting with:
- Blockchain-based KYC systems
- Cross-border settlement
- Smart contract-driven trade finance
With the business impact of:
- 30% to 50% reduction in settlement costs
- Faster settlements from T+2 to near real-time
- Improvement in fraud detection
Manufacturing & Supply Chain
Web3 enables:
- Immutable audit trails
- ESG compliance tracking
- Vendor authenticity verification
Media, Creator Economy & IP Protection
Web3 empowers:
- Royalty automation via NFTs
- Direct fan monetisation
- Anti-piracy mechanisms
| Model | Description | Indian Business |
| Tokenised platforms | Utility tokens power ecosystem | Gaming & fintech |
| SaaS on blockchain | Enterprise blockchain solutions | Logistics, BFSI |
| DAO-based services | Community-driven governance | Creator platforms |
| NFT licensing | IP monetisation | Media and sports |
| Infrastructure as a service | RPC nodes, data indexing | Web3 startups |
The Rise of Web3: Analysis and Insights
By early 2025, Web3 adoption had grown to over 560 million crypto holders globally, around 6.8% of the global population, indicating widespread adoption in the market. The engagement in the local market, from trading to development, highlights unique advantages, such as:
- A strong developer ecosystem
- Mass user adoption
Why India Stands Out:
- Cost-efficient talent
- Massive digital population
- Strong engineering ecosystem
- Rapid experimentation culture
Challenges Faced by Indian Businesses in the Adoption of Web3
Despite its significant popularity and increase in the user rate, Indian businesses must deal with some significant challenges, such as:
- The insufficiency of comprehensive rules and regulations in Web3 continues to slow institutional adoption, particularly in crypto resource, taxation, and compliance frameworks.
- Web3 platforms face cybersecurity threats globally. In 2025, crypto thefts exceeded around $2.17 billion, including incidents affecting Indian platforms, which determines the need for a stronger safeguard system.
- While the number of developers is high, the demand for blockchain security experts, smart contract auditors, and decentralised architecture designers outshines the supply.
Web3 Future Outlook
India is at the forefront of Web3 innovation, with startups using cutting-edge tech to remain competitive in the market and stay ahead. India is projected to become the largest Web3 developer hub by 2028. The integration of Web3 across sectors like telecom, fintech, and education will also deepen, driven by enterprise partnerships and government support. Continuation of mobile and internet adoption, which is coupled with digital literacy programs that will enable broader participation of users.
Conclusion
Web3 represents a standard shift not only in technology but in how business value is created, shared, and owned. Especially for Indian enterprises, from startups to traditional corporations, adopting Web3 is no longer an option for business leaders, but a strategic approach. Indian businesses are ready to shape the future of digital economies by investing in talent, promoting innovation, building all-in frameworks, and engaging with decentralised models. For Indian enterprises, the next phase of Web3 adoption will be defined not by experimentation alone, but by scalable pilots, regulatory alignment, and ecosystem partnerships.
FAQs
Q1. What is the difference between Web 2.0 and Web 3.0?
A: Web2 is centralised with large platforms controlling data and monetisation, while Web3 is decentralised, with users having their rights and owning their data and digital assets via blockchain.
Q2. How can Indian businesses benefit from Web3 financially?
A: Indian businesses can benefit through token-based fundraising, DeFi revenue streams, fractional ownership models via tokenisation, and new customer engagement through NFTs and a decentralised marketplace.
Q3. Is Web3 regulation restrictive in India?
A: Web3 rules and regulations are evolving. While several uncertainties still exist, structured policies will ultimately provide: clarification, protection to businesses & consumers, and attract institutional investments that balance both innovation and safety.
Q4. What are the skills required for Web3 adoption in India?
A: Key skills that are included in the adoption of Web3 in India are smart contract development, blockchain architecture, decentralised storage systems, cryptography, and security auditing.
Q5. What sectors in India have the most Web3 potential?
A: High-potential Web3 sectors are financial services, gaming and entertainment, supply chain management, digital identity and authentication, and tokenised asset markets, which offer a growing number of real-world use cases.
