According to a survey released on Wednesday, India has 247 million “entrepreneurial households” that are in charge of an astounding $8.8 trillion in transaction value for the fiscal year 2023. These households are predicted to increase to $95.2 trillion by 2043 at an annual growth rate of 12.7%.
These “entrepreneurial households” are going to be major actors in the upcoming economic boom in India.
The “entrepreneurial households” produce several sources of income and utilize them, in addition to borrowed cash, to participate in high-value transactions involving significant goods and services and company investments, according to a report by Enmasse, Praxis Global Alliance, and Elevar Equity.
A new term, ‘Core Transaction Value (CTV),’ was introduced in the paper. It quantifies the whole economic activity of these households, encompassing all of their incomes, borrowings, and spending.
“Given that we were taking a fresh approach to market sizing that felt almost impossible to begin — putting the customer segment first and not focusing on a sector or a product – we felt it is useful to provide additional visibility into our analysis and estimates, with triangulations from multiple sources,” said Madhur Singhal, Managing Partner and Chief Executive Officer of Praxis Alliance
According to the data, “Brands catering to these households have experienced high returns on investment, on par with the leading companies featured in the Nifty50 stock index.”
The significance of these households in propelling India’s future economic growth and prosperity was emphasized in the report.
“For entrepreneurs and investors, this presents a unique opportunity to innovate and invest in this rapidly growing market, potentially reaping substantial returns,” it stated.
More than traditional income metrics, the “entrepreneurial households” are distinguished by their astute distribution of funds between investments and consumption, which speaks to their economic vibrancy.
