According to a survey conducted by Incrypt, more than 80% of Indian based blockchain developers are planning to move out of the country to work with foreign companies if the Indian government fails to provide a clear regulatory framework. This survey that was conducted over a period of six months included more than 100 Indian developers. Incrypt is a blockchain community leader based away from Bengaluru.
According to the report after the survey, the delay by the Indian government to release the required regulatory framework is hindering innovation, dragging capital infusion and as a result shutting down a lot of opportunities for the blockchain entrepreneurs in the country.
The Reserve bank of India RBI had directed all financial institutions in India not to operate or transact with any firm using cryptocurrency. This restriction took effect as from the 6th of April barring major exchanges operating in India from making fiat deposits or withdrawals. This restriction has a had a far reaching negative effect on the crypto industry in India.
Incrypt founder Nitin Gupta said that blockchain projects are creating new opportunities in the information technology IT industry. There are a lot of front and back end engineers getting opportunities thanks to this technology. These jobs come at a time when the IT industry has been declining losing jobs. He advises that India needs to take action and set the right regulations to help firms manage risks and attract foreign blockchain investment as a result.
Looking at the Indian market, the government is not entirely against the blockchain technology, but against bitcoin. The government is in fact in favor of private blockchains, and have several projects currently being explored. It is however, not in favor with public blockchains like Ethereum, a position that is making blockchain developers in the country find it hard to build applications on the public blockchains.
Despite cryptocurrency prices going down in 2018, data shows that blockchain opportunities continued to rise from 2017 through 2018 and are still on the rise. Proper regulations could create more job opportunities for a country that has among one of the largest pool of blockchain developers. Only 5000 of these developers at the moment have the right blockchain technology skills, but this could rise with more opportunities.
Companies like Consensys have established courses and hackathons in the Indian blockchain community after realizing the underlying potential in this pool of developers.
Indian booming economy will begin to lag if they continue with their policies of restricting a booming industry such as the crypto industry. Restricting individuals from developing crypto and blockchain technologies will leave India behind as the rest of the world moves forward in this space. A lot of potential developers that could help India move forward will be forced to migrate to seek opportunities else where since no one can stop technology from advancing.