India’s Web3 Paradox: High Adoption Masks Innovation Drought Amid Regulatory Uncertainty
India ranks among global leaders in cryptocurrency adoption, yet beneath the surface lies a troubling innovation gap. While retail investors flock to digital assets, the ecosystem suffers from weak developer activity, negligible blockchain research, and a dearth of globally competitive Web3 projects.
VC funding has stalled as investors await regulatory clarity. The current funding freeze stems from domestic venture capitalists withholding capital until transparent rules emerge, leaving the market reliant on foreign investors and global funds.
Influencers warn this builder drought threatens long-term growth. Without homegrown innovation to complement retail enthusiasm, India risks becoming a consumer rather than creator in the digital asset revolution.
