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The Metaverse is transforming industries worldwide. According to a new report, it is poised to present a $13 billion opportunity globally and India’s Metaverse and Web3 market is projected to reach $200 billion by 2035. The retail and financial services sectors are tipped to drive Web3 and Metaverse adoption in India.
Strategy and management consulting company Arthur D. Little launched their report “Web3 & Metaverse – The Rise of the New Internet & the India Opportunity” on June 1. The report highlights how emerging technologies, with a potential of $200 billion, could be a game changer for India.
With significant investments made in the sector, the outlook for the Indian Web3 and Metaverse space seems robust, according to Barnik Chitran Maitra, Managing Partner at Arthur D. Little India and South Asia. “Content creators and gaming start-ups are leveraging Web3 to directly monetise users, bypassing intermediaries, and corporates are building metaverses to engage more meaningfully with their employees and customers,” he said.
Maitra believes that for India to realise its potential $200 billion Metaverse and Web3 market, startups, investors, corporations and the government will have to work together.
Metaverse is currently at a nascent stage, and it made its way to the collective consciousness after Facebook chose to rename itself as Meta. Similar to the rapid development of AI and the apprehensions surrounding it, Metaverse too has triggered significant debates around regulatory oversight, privacy and user safety. Based on the report, if India is to witness a mass adoption, there seems to be a need for necessary guardrails in place to protect the interests of all stakeholders.
“The government should have a proactive policy that acknowledges their support for the Metaverse. The biggest barriers to adoption will be the cost of augmented reality (AR) and virtual reality (VR) devices. They should consider implementing a favourable policy environment, such as tax rebates, incentives, or subsidies, especially for the use of these devices in healthcare and education. To start, the government needs to endorse and have a vision for the Metaverse,” Maitra told the indianexpress.com.
Maitra said that at present Metaverse is often confused with cryptocurrencies, and the government has a negative stance on the latter. He asserted that there was a need for a more proactive stance in terms of hardware and infrastructure, where the government can provide subsidies and tax breaks to incentivise investments in those areas.
According to the report, e-commerce penetration in India is set to grow, and India’s leadership in digital payments adoption could lead to the integration of fintech solutions in the Web3 ecosystem. Moreover, the report also highlights key areas that are relevant for various stakeholders to participate in the Web3 and Metaverse boom.
The report recommends investors set up dedicated teams and establish accelerator programs to harness the power of Web3 and Metaverse. Corporations can partner with startups through Web3 and Metaverse sandboxes. It also suggests regulators draft supportive policies, incentivise investments, and encourage governments to consider hardware subsidies for AR and VR devices.
“We have laid out a series of emerging use cases, spanning multiple sectors and industries. All of these use cases are adding value. For instance, corporates can collaborate with these startups and establish sandboxes where they can experiment with these use cases. For startups, the report provides an opportunity to partner with larger corporations,” said co-author Pankaj Mann, Management Consultant, Arthur D. Little.
