Emre Yumlu 
India’s ruling party, the Bharatiya Janata Party (BJP), has introduced a bold proposal to position the country at the forefront of digital finance. Pradeep Bhandari, the national spokesperson for BJP, called for the launch of a Bitcoin reserve pilot program, arguing that it’s time for India to take more concrete steps in embracing digital assets.
Bitcoin as a Strategic Asset for India?
According to Bhandari, the growing interest in sovereign Bitcoin reserves in countries like the United States and Bhutan indicates a shift in global financial strategies. He emphasized that India, with its expanding renewable energy infrastructure, is well-positioned to integrate Bitcoin into its economic framework as a “calculated and strategic move.”
India’s Crypto Dilemma: “Taxed but Unregulated”
While crypto is heavily taxed in India, the regulatory landscape remains vague. Under current laws, gains from Virtual Digital Assets (VDAs) are subject to a flat 30% tax rate. While acquisition costs can be deducted, there are no provisions for accounting losses or other expenses.
In addition, crypto transactions above approximately $115 are subject to a 1% Tax Deducted at Source (TDS), collected either from the buyer or the seller.
G20 Leadership Didn’t Translate Into Regulation
During its G20 presidency in 2023, India led efforts to establish a global crypto working group in collaboration with the International Monetary Fund (IMF). However, Bhandari pointed out that countries like Russia, China, Brazil, and the United States are pushing ahead with their own national crypto strategies without waiting for global consensus.
Notably, several U.S. states have already recognized Bitcoin as a reserve asset, and federal plans have been proposed for BTC purchases without burdening public budgets—moves that India could learn from.
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