India Cryptocurrency Market

India Cryptocurrency Market Size and Trends:

The India cryptocurrency market size was valued at USD 2.6 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 13.9 Billion by 2033, exhibiting a CAGR of 18.48% from 2025-2033. The market is primarily driven by blockchain innovation, higher awareness of digital financial solutions, growing interest in decentralized platforms, faster adoption of technological innovations, changes in clarity of regulations, greater access to the trading infrastructure, the introduction of educational courses that focus on blockchain, and the emergence of crypto-based financial products that make for a dynamic investment ecosystem.

The market in India is majorly influenced by the growing interest of technology-savvy millennials and Gen Z in digital assets and seeing them as an alternative avenue for investments. Additionally, the emergence of crypto-specific start-ups and innovation hubs across major cities has created a vibrant ecosystem for blockchain-based solutions. As of Nov 2024, India became an undisputed global crypto-innovation hub, showing growth in its share from the developers involved in global web3 projects from 3% in 2018 up to a substantial 12% in 2023.

The increasing adoption of blockchain technologies and crypto-based solutions due to the favorable economic conditions and a robust, tech-savvy workforce are further strengthening the market across the country. Moreover, the growing accessibility of educational initiatives is playing a pivotal role in equipping individuals and businesses with the necessary knowledge to embrace these technologies. For example, the free 12-week undergraduate course on cryptocurrencies and blockchain technology by the Indian Ministry of Human Resource Development remains an important resource in 2024, provided by the Swayam portal. The course includes subjects such as blockchain basics, Bitcoin, and their applications across industries. Such courses help students' and professionals' understanding of digital currencies and distributed ledger technologies, which is also facilitating market growth.

India Cryptocurrency Market Trends:

Regulatory Developments and Favorable Initiatives

The implementation of supportive government initiatives and regulations are transforming the market in India positively. For example, an Economic Times news article released on May 17, 2024, discusses the proposal of the Securities and Exchange Board of India regarding a multi-regulatory framework for overseeing the trading of cryptocurrencies, with recommendations to have certain regulators manage activities within their expertise. Industry leaders, such as Edul Patel, CEO of Mudrex, have been optimistic about this development, stating that it will bring much-needed regulatory clarity and boost investor confidence. In addition to these developments, government-led initiatives, such as tax incentives, funding programs, and infrastructure investments, encourage innovation and adoption. Also, projects regarding the Digital Rupee are examples of the government's commitment to modernizing the financial system in India.

Emergence of Decentralized Finance (DeFi) Platforms

The rise of DeFi, or decentralized finance platforms, is reshaping the market in India. For example, on March 11, 2024, Ashish Anand, India's founder of Bru Finance, reported that DeFi has revolutionized activities like lending, borrowing, and trading by providing blockchain-based smart contracts. This cuts out the need for traditional banks and gives people more efficient access to capital and liquidity. Tokenizing real-world assets on blockchain further expands financial opportunities, especially in rural areas where banking infrastructure is limited. Also, DeFi improves financial inclusion while meeting the requirements of tech-savvy millennials who are always on the lookout for transparency and control over their assets. It is democratizing access and also inspiring innovation within the sector, making DeFi a key driver of growth in the market.

Global Trends and Institutional Investments

The market in India is influenced by global trends and institutional investments, which are driving the integration of the market into the international financial ecosystem. The growing participation of global financial institutions in digital assets is changing the domestic market system. The entry of institutional players increases market credibility, thus providing the confidence of the retail investor. Innovation in crypto-based products such as ETFs and blockchain bonds is pushing the innovation curve in Indian financial institutions. International standards make India more competitive and attractive for global collaborations. For instance, on September 3, 2024, SEBI announced plans to simplify registration procedures for foreign investors, focusing exclusively on government bonds. This initiative aims to facilitate increased foreign participation in India market. These developments underscore the country's growing prominence in the global cryptocurrency landscape, driven by proactive adaptation to international trends and strategic measures.

India Cryptocurrency Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the India cryptocurrency market, along with forecasts at the country and regional levels from 2025-2033. The market has been categorized based on type, component, process, and application.

Analysis by Type:

• Bitcoin
• Ethereum
• Bitcoin Cash
• Ripple
• Litecoin
• Dashcoin
• Others
   

Bitcoin is the most recognized and widely adopted digital currency in the Indian cryptocurrency market. Its decentralized nature and use as a store of value attract both individual investors and institutions. Many Indians view Bitcoin as "digital gold," a hedge against inflation, and a means of global transactions without intermediaries, which aligns with the country's growing interest in fintech solutions.

Ethereum plays an important role in the Indian cryptocurrency market due to its accommodating blockchain that supports smart contracts and dApps. Indian developers and companies are becoming progressively active with Ethereum for blockchain-based projects on the finance, health, and supply chain management fronts. Its flexibility, position as a possible factor in DeFi, and NFTs ensure that Ethereum maintains its position in this tech-savvy environment, inspiring new ideas and investment within India.

Bitcoin cash attracts Indian users since it promises faster transaction speed and a lower fee charge compared to Bitcoin. Bitcoin cash easily attracts small business users and freelance workers who desire fast cross-border payment options. The focus of Bitcoin cash on ease of access, coupled with being cost-effective, resonates well with the growing base of cryptocurrency enthusiasts in India, as well as merchants.

Analysis by Component:

• Hardware
• Software 
   

Hardware plays a major role in the market, especially in mining and storage solutions are concerned. Cryptocurrency mining requires certain equipment, such as GPUs and ASICs, in order to maintain blockchain networks. It also offers digital asset holders a secure and safe repository for their cryptocurrency holdings while ensuring that those assets will be safe against cyberattacks. This places a greater dependence on hardware as part of the India's cryptocurrency market.

The software is central to the Indian market of cryptocurrencies, that allows trading, managing wallets, and even making blockchain development. The variety of platforms and apps for cryptocurrency exchange offers a smooth user experience and attracts quite a broad audience. Blockchain software also inspires innovation in smart contracts, decentralized finance (DeFi), and NFTs. The developers in India are largely reliant on software solutions for building and scaling up blockchain-based applications, and their growth fuels the market.

Analysis by Process:

• Mining
• Transaction
   

Mining plays a crucial role in the Indian cryptocurrency market, mainly for maintaining blockchain integrity and generating new digital coins. Although regulatory uncertainties limit large-scale operations, small-scale miners use GPU and ASIC setups to participate in global blockchain networks. Mining also raises awareness about the technical foundations of cryptocurrencies, contributing to India's growing interest in blockchain technology and its applications.

Transactions are the backbone of India's cryptocurrency market. The increasing usage for cross-border payments, remittances, and online purchases due to the growth of their cryptocurrencies, Bitcoin, Ethereum, and even stablecoins, supports the adoption. The growing popularity of cryptocurrency exchanges and payment gateways in India indicates the preference of the masses for digital transactions over traditional banking methods, giving birth to a robust and dynamic crypto economy.

Analysis by Application:

• Trading
• Remittance
• Payment
• Others 
   

Trading remains the largest component in the cryptocurrency market of India, attracting all sorts of players. The trading platforms in cryptocurrency, offering fiat-to-crypto trading and crypto-to-crypto trading, are increasing because of a strong population that is more technical and keener on alternative investment ideas. Trading has become the prime application of access to exchange as well as mobile apps, it creates a major liquidation source for markets.

Remittance dominates the Indian cryptocurrency market as it is a faster and cheaper alternative compared to traditional money transfer methods. The increasing usage of cryptocurrencies such as Bitcoin and stablecoins to make cross-border payments has an impact on the market. Remittance eliminates intermediaries, reduces transaction fees, and provides near-instant transfers, making them a practical choice. Also, it supports financial inclusion in underserved regions.

Payments are catching attention in the Indian crypto space as companies and consumers embrace digital assets to manage everyday transactions. Cryptocurrency enables low-friction and friction-free, cost-effective payments over the Internet for purchasing services online or offline. More inclusion of cryptocurrency payment gateway along with wallets is creating easy transactions, promoting their acceptance, and proving the existence of these cryptocurrencies as a real, potential financial instrument for everyday mainstream usage in India.

Regional Analysis:

• South India
• North India
• West & Central India
• East India 
   

South India is increasingly becoming the new hub in the Indian cryptocurrency market due to the robust ecosystem of tech and a high literacy rate. The IT hubs in cities like Bengaluru, Hyderabad, and Chennai are leading blockchain innovation and crypto adoption in this region. This region has a population with the right technical aptitude that is engaged actively in trading, blockchain development, and cryptocurrency startups that establish South India as a vibrant center for crypto activities.

North India has a significant part in India's cryptocurrency market, especially with the financial hub of Delhi and the new capital of Gurgaon, which houses many startups. The demography-rich population and rising awareness of digital assets are primary drivers. The North India area is also developing into the hub for education on cryptos, workshops, and seminars that enhance knowledge of blockchain technology.

West and Central India, particularly through the cities of Mumbai and Pune, are important locations for cryptocurrency due to their financial and tech environments. Mumbai is the financial capital of India, and so it attracts institutional investors as well as startups experimenting with blockchain applications. Pune's robust IT sector makes this region important. These regions also experience an increase in crypto-related financial services, including exchanges, wallets, and payment gateways, thus fueling adoption.

East India is steadily entering, with Kolkata leading the cryptocurrency market. Trading and investment in crypto are seen to increase in the region due to growing awareness and the introduction of user-friendly trading interfaces. East India plays a significant role in implementing blockchain technology for supply chain management and remittance solutions, which effectively address local economic challenges.

Competitive Landscape:

The India cryptocurrency market is growing with the high tech-savviness of the people and increased adoption of technology. The competitive landscape includes local platforms, international trading desks, and new-age startups vying for shares in the marketplace. Regulatory frameworks and increasing adoption in multiple sectors continue to add to the market's competitive dynamics. For instance, an article published by The Times of India on September 15, 2024, discusses the growth of the adoption of digital currencies in the hospitality industry. It has also mentioned the benefits of cryptocurrency payments, such as lower transaction fees, faster settlement, and security through blockchain technology. Regulatory developments and government initiatives reiterating various guidelines and frameworks for digital assets are influencing the market. These factors bring innovation and competition while enabling India to emerge as an important player in the global ecosystem of cryptocurrency.

The report provides a comprehensive analysis of the competitive landscape in the India cryptocurrency market with detailed profiles of all major companies.

Latest News and Developments:

• August 22, 2024: CNBC-TV18 reported that India's Department of Economic Affairs is preparing a consultation paper on cryptocurrency regulation, expected to be released between September and October. This initiative aims to gather feedback from stakeholders to shape a comprehensive regulatory framework for digital assets. Finance Minister Nirmala Sitharaman emphasized the importance of a unified global approach to cryptocurrency regulation, aligning with G20 nations' consensus.
• December 5, 2024: Hindustan Times reported that Bitcoin and other cryptocurrencies are legal in India following a Supreme Court decision overturning the Reserve Bank of India's prior ban. However, the government imposes a 30% tax on gains from Virtual Digital Assets (VDAs) and a 1% Tax Deducted at Source (TDS) on transactions exceeding ₹50,000 (or ₹10,000 for specified categories). Investors must comply with these tax regulations and be aware of the inherent risks and regulatory uncertainties associated with cryptocurrency trading.

India Cryptocurrency Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the India cryptocurrency market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the India cryptocurrency market.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the India cryptocurrency industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.