SUMMARY
Report notes that India is well positioned demographically to contribute digital labor to the metaverse
The report also highlighted that the existing components of the India Stack could be quickly deployed to cataylse the metaverse space
The global metaverse market is witnessing rapid adoption ans was last pegged at $38.85 Bn in 2021
As adoption of metaverse gathers steam, a report now estimates that the potential impact of the emerging technology on India is expected to hover between $79 Bn and $148 Bn per year by 2035.
As per a report published by management consultancy firm Deloitte, this number could translate between 1.3% to 2.4% of the country’s overall gross domestic product (GDP).
Noting the country’s prowess as an IT and product development hub, the report noted that the country was well positioned demographically to contribute digital labor to the metaverse.
“India has a population that is young, digitally connected, and ready for the metaverse. With over half of its population under the age of 30, the country produces the highest number of STEM graduates globally. It is demographically well-positioned to contribute digital labor to the metaverse, especially since it is already a go-to destination for IT offshoring globally and is evolving rapidly into a product development hub,” said the analysis.
The report also noted that many large Indian conglomerates such as Infosys and Tech Mahindra had set up metaverse subsidiaries, adding that the development of metaverse in the country could provide more opportunities for the digitally skilled workforce.
Terming the burgeoning homegrown gaming market as a promising development, the report said that games served as an entry point into the metaverse. Citing a slew of gaming, media and entertainment companies that had deployed metaverse, Deloitte said that these platforms could make metaverse more accessible for gamers and viewers who were already engaging with these platforms.
‘The Ecosystem Enablers’
The report highlighted that the existing components of the India Stack could be quickly deployed to catalyse the metaverse space.
“Given this existing infrastructure, if India can build on the existing India Stack into the metaverse’s digital components such as blockchain and NFTs, it should be able to rapidly create scale given their large population… With more regulatory certainty and a clear legal framework for Virtual Digital Assets, India’s mature digital payments systems can be leveraged to orchestrate the economic infrastructure of the metaverse,” added the report.
Deloitte also cited three key ecosystem enablers for the metaverse in the country – high social acceptance, a highly digitally-skilled population and an increasing focus on metaverse regulation.
Indian polled as part of the report exhibited high enthusiasm for the metaverse. More than 80% of the respondents were familiar with metaverse, while 75% of the people polled expressed ‘positive feelings about engaging with extended reality.’
It also noted that the positive sentiment could support the development of the metaverse in the country, adding that companies were keen on investing in the metaverse to develop related products.
The findings also stated that increasing smartphone penetration and cheap mobile data could spur the space, allowing early iterations of the smartphone-specific metaverse to find a large audience in the country.
Lauding the country’s cybersecurity framework, Deloitte said that India was one of the first countries in the globe to mention metaverse in its policy considerations on bullying and sexual abuse.
The report also expressed hope that the upcoming Digital India Act would look at tightening laws with regard to crimes in the metaverse, including spreading misinformation and inciting violence. It also noted that more work was needed to upskill the broader population for new opportunities in the space.
Additionally, questions were also raised over the digital divide prevalent in the country. The report said that more work was necessary to address issues related to ‘usage of internet and access to digital infrastructure based on gender, rural-urban residence, caste and age.’
Interestingly, Minister of State (MoS) for electronics and information technology Rajeev Chandrasekhar recently told Inc42 that there was nothing preventing startups from innovating in the crypto or Web3 space.
The overall metaverse space, however, continues to be an innovative and attractive bet for startups and businesses alike. A case in point was a June 2022 report that noted that 79% of active consumers had made purchases on the metaverse.
From ecommerce player Flipkart opening virtual store fronts on metaverse to Tanishq employing metaverse to display its necklace designs, the space has emerged as an enticing opportunity. A separate report had pegged the global metaverse market at $38.85 Bn in 2021, which is only projected to soar further from here onwards.
