By Mr. Vikram R Singh, Founder, and CEO, of Antier Solutions
The Union Budget should take decisive steps to drive India into the next phase of the Web3 economy by promoting Internet-enabled disruptive technologies like blockchain, metaverse, NFTs, and Defi. The answer lies in encouraging the mass adoption of new-age digital technologies and attracting investments for startups in these domains by incentivising innovation through tax concessions.
The government should promote the growth of a digital ecosystem in India by launching more accelerator programs in partnership with leading companies, introducing web3 technologies as mainstream subjects in academic institutions, and setting aside ample funds to enhance technological capabilities to support, for instance, creator-led campaigns within the metaverse. We expect the Budget to make the most of the decentralisation of technology by creating a regulatory framework that supports tech startups and extending grants for cross-disciplinary research so as to commercialise disruptive technologies, minus the associated risks.
The Indian blockchain industry is also expecting the government to drive the growth of this niche sector by setting up incubation centers for blockchain startups and allocating funds to boost R&D in blockchain technologies. The government should lay the groundwork for establishing India as the blockchain capital of the world by devising a legal and regulatory mechanism for the utilization of blockchain technologies across various industries to enhance the efficiencies of businesses and spur the growth of Indian blockchain companies in the long term. Going a step ahead, it should also adopt blockchain in the policymaking process.
Last but not the least, the government should ensure fast-track implementation of the regulatory framework for crypto exchanges, raise the TDS exemption limit on virtual digital assets and offer relief on crypto taxation. Currently, cryptocurrencies and the recently launched CBDC by the Reserve Bank of India appear to be on opposite sides of the blockchain spectrum. However, there is massive scope for coexistence and interdependence. CBDC can be a great way to bridge the gap between multiple cryptocurrencies, and both can coexist. Being the central bank, the RBI has every reason to play safe and do its due diligence before adopting technologies like Defi lending, but we look forward to positive announcements in this regard.
All these measures will create a plethora of opportunities for Indian tech companies in global services and new product development cutting across diverse sectors, besides attracting FDI and generating more jobs in the tech domain. On their part, tech companies should focus on solving real-world problems using blockchain and produce actionable proofs of concept, to help the Web3 ecosystem flourish.