An Empirical Study on Impact of Cryptocurrency Adoption on India’s Economic Growth

Abstract

The cryptocurrency penetration in India has triggered a positive debate on its contribution to the economic growth of the country in the future. The regulatory, as well as the taxation environment, has been an obstacle to the booming crypto market, but nonetheless, it has experienced a lot of retail involvement in the industry and it begs to question whether crypto can actually affect major indicators of economic growth and development. This paper investigates by what level the crypto adoption and its establishment in the Indian economy can be measured using the macroeconomic indicators in the GDP, in the field of the private investment and employment patterns. This research employs statistical modeling and hypothesis testing, as the growth in crypto users can be presented in the form of quantifiable positive effects on the economic performance, particularly with the announcement of the tax on digital assets tax of 30 percent in 2022 and in the present year budget 2026 crypto in budget, it is a strong signal of how the government perceives digital assets as a speculative instrument, taxable asset, or component of a larger digital economy approach. Results revealed that involvement of the users was rising at an alarming rate, but there were few facts implying a significant effect of adoption to traditional economic yardsticks. This paper will also conclude by considering the implication of the regulation, policy making and research in an ever-changing digital financial environment in India.