- India,
- 29-Mar-2025 06:00 AM IST
Cryptocurrency: Crypto mining is an emerging sector globally, but India is lagging behind. India has 11% of the global IT workforce and produces more than 1.5 million engineering graduates every year, yet India's share in global crypto mining is less than 1%. India has the potential to become a superpower of the Global South in this field.What is crypto mining?Crypto mining is the process in which new tokens of bitcoin and other crypto assets are created and transactions are verified. It is a decentralized network in which specialized computers add transactions to the blockchain by performing complex calculations. Miners who contribute to this are rewarded in the form of new tokens, keeping the network secure and active.Many countries of the world are doing crypto miningThe US, Canada and Kazakhstan have adopted crypto mining on a large scale with energy resources and favorable policies. The US currently handles 37.8% of global bitcoin mining. Countries like Bhutan and Norway are moving ahead in this field using hydroelectric power. El Salvador plans to build a "Bitcoin City" from its volcanic energy.Why is India lagging behind?There is no direct ban on crypto mining in India, but policy instability, high taxes and lack of supportive framework are major barriers. After the implementation of 30% tax and 1% TDS on crypto income in 2022, many Indian startups shifted to countries like Dubai, Singapore and Estonia.8 lakh jobs and billions of dollars in revenue by 2030According to a 2022 report by NASSCOM and Hashed Emergent, if India steps up in this sector, it can generate over 8 lakh jobs and an economic contribution of around $184 billion by 2030.Importance of energy for crypto miningEnergy is essential for crypto mining, and India has vast renewable energy resources. With a 500 GW renewable energy target by 2030, India can contribute to its energy sustainability by adopting crypto mining.Which states have potential?States like Karnataka, Tamil Nadu and Gujarat have ample solar and wind energy resources that can be harnessed for crypto mining. This will provide additional revenue to the states and an opportunity to invest in development schemes.