India’s Web3 Industry at Crossroads as Lobby Group Pushes for Tax Relief
India's cryptocurrency sector faces a pivotal moment as the Bharat Web3 Association (BWA) presents urgent tax reform demands to the Finance Ministry. The lobbying group seeks to reverse what it calls "suffocating" policies that have driven $42 billion in trading volume offshore since 2022's stringent tax regime took effect.
At stake is whether India will retain its position as a Web3 hub or see its talent and capital migrate to more accommodating jurisdictions like Dubai and Singapore. The BWA's three-pronged proposal targets the 1% TDS rate—which market makers claim paralyzes liquidity—and seeks loss-offset provisions comparable to traditional asset classes.
The global crypto market's $3.3 trillion capitalization contrasts sharply with India's stagnating domestic activity. Industry leaders warn current policies inadvertently benefit offshore exchanges while crippling local operators.
