India’s crypto market could hit $15B by 2035 despite heavy taxes and strict rules. | Credit: Getty Images.
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Key Takeaways
India’s crypto market is projected to grow to as much as $15 billion over the next decade.
With more than 119 million users, India is the world’s largest crypto market by user base.
Despite soaring adoption and global investor interest, the Indian government continues to take a cautious, conservative approach to crypto.
India may have some of the world’s toughest crypto taxes, a central bank that openly opposes digital assets, and a government that refuses to classify cryptocurrencies as anything more than “speculative.”
Yet the country is still on track to become one of the largest crypto markets of the next decade.
Analysts now estimate India’s crypto economy, currently valued at roughly $2.6 billion, could grow to $15 billion by 2035, powered by a massive user base and a uniquely young population that continues to adopt digital assets at a rapid pace.
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Multiple industry reports project that India is evolving into the next major center of crypto activity.
While regulation remains restrictive, user interest has not slowed; instead, the market appears to be stabilizing after years of volatility and policy uncertainty.
Indian crypto adoption by year. Source:X
India’s crypto user base — estimated at 119 million people, the largest in the world — continues to expand.
According to CoinSwitch’s Q3 2025 data, Gen Z (18–25) now represents the biggest investor cohort at 37.6%, closely followed by Millennials (26–35) at 37.3%.
The demographic advantage is difficult to overstate.
With over two-thirds of India’s 1.4 billion citizens under age 35, digital assets have become a popular alternative to stagnant job markets, slow wage growth, and limited high-yield investment opportunities.
Trading activity has rebounded as platforms improve and users become more familiar with the ecosystem.
Market observers say that despite periodic downturns and regulatory pressures, Indian investors have remained unusually resilient.
Crypto Grows — Even as India Keeps It at Arm’s Length
Cryptocurrencies are legal to trade, but they are not recognized as legal tender.
The government continues to classify them as speculative instruments, unsuitable for use in mainstream finance.
The tax structure remains one of the harshest worldwide:
30% flat tax on crypto gains.
1% TDS (tax deducted at source) on every transaction.
The TDS in particular has pushed a significant portion of trading offshore, as major domestic exchanges report declining volumes.
Yet, even with these deterrents, India’s crypto user base continues to grow.
Analysts note that the market’s expansion is occurring despite, not because of, the policy environment.
The result is an unusual dynamic: one of the world’s fastest-growing crypto markets operating without clear regulatory support.
With global exchanges expanding into India and domestic platforms reporting steady user growth, industry observers believe the government may eventually be pressured into modernizing its stance — even if it is gradual.
Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
His coverage spans major industry events, including the high-profile collapses of FTX, Three Arrows Capital (3AC), and LUNA, offering readers insightful analyses of their regulatory and market implications. Prashant’s technical background enables him to bridge the gap between intricate blockchain technology and its real-world applications, making his work accessible to novices and experts.
Beyond his professional pursuits, Prashant is an avid music enthusiast, often exploring diverse genres to unwind. A sports lover, he has a particular passion for cricket and frequently engages in discussions about the game. His multifaceted interests and sharp journalistic instincts make him a valuable contributor to CCN, where he continues shaping the crypto landscape's narrative.
