India could soon consider joining the ranks of nations building sovereign Bitcoin reserves, if calls from the ruling Bharatiya Janata Party (BJP) gain traction. In a recent editorial for India Today, BJP national spokesperson Pradeep Bhandari urged the government to pilot a Bitcoin reserve program as part of a broader digital asset strategy.
Bhandari argued that global finance is rapidly shifting toward crypto, pointing to initiatives like Bhutan’s government-backed Bitcoin mining operations and the United States’ proposed strategic Bitcoin reserve. According to him, India’s expanding renewable energy infrastructure positions it uniquely to embrace a sovereign Bitcoin strategy without compromising fiscal prudence.
“This isn’t a reckless pivot,” Bhandari wrote.
“It’s a calculated step toward embracing digital assets’ legitimacy and leveraging them for economic resilience.”
The proposal signals growing interest within India’s political leadership in using crypto as a strategic asset class rather than merely taxing it as speculative income.
India’s Crypto Landscape: Taxed but Unregulated
India’s approach to crypto remains contradictory — imposing heavy taxes on digital asset transactions while failing to introduce a comprehensive regulatory framework. Bhandari highlighted this inconsistency in his commentary, stressing the urgent need for clarity.
Under current rules, India applies a 30% flat tax on profits from trading virtual digital assets (VDAs) such as Bitcoin and Ether. Section 115BBH of the Income Tax Act allows traders to deduct acquisition costs, but it offers no relief for other expenses or offsetting losses. Additionally, all crypto trades above 10,000 Indian rupees (roughly $115) incur a 1% tax deducted at source (TDS), regardless of whether a profit is made.
Critics argue that this tax-heavy, regulation-light model stifles innovation, drives activity offshore, and leaves investors vulnerable in a largely unregulated market. Bhandari called for a coherent policy that addresses both taxation and investor protection.
Global Momentum Fuels Calls for Action
Bhandari’s push for a Bitcoin reserve pilot comes as India risks falling behind other major economies in digital asset adoption. During India’s G20 presidency in 2023, the government helped coordinate efforts with the International Monetary Fund on crypto regulation, but little domestic progress has followed.
Meanwhile, Bhandari noted that countries like the United States, Russia, China, and Brazil are advancing their crypto strategies without waiting for multilateral consensus. He pointed to the US government’s plans to expand its Bitcoin reserves through budget-neutral acquisitions, as well as the authorization of Bitcoin as a reserve asset in several US states.
“A measured Bitcoin strategy — perhaps starting with a reserve pilot — could strengthen India’s economic resilience and project modernity on the global stage,” Bhandari wrote.
He concluded that regulatory clarity and a sovereign Bitcoin reserve initiative would not only support innovation but also protect investors and integrate India more firmly into the evolving global financial system.
Quick Facts
- BJP spokesperson Pradeep Bhandari urged India to launch a Bitcoin reserve pilot as part of a national crypto strategy.
- India taxes crypto profits at 30% but has yet to establish a regulatory framework.
- Bhandari highlighted the US and Bhutan’s sovereign Bitcoin initiatives as models India could follow.
- He called for regulatory clarity to enable innovation and strengthen economic resilience.
