Key Takeaways
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India’s crypto market is projected to grow to as much as $15 billion over the next decade.
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With more than 119 million users, India is the world’s largest crypto market by user base.
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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.
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.
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.
Despite the momentum, India’s regulatory stance has remained largely unchanged in recent years.
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:
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.