India's Entrepreneurial Households Drive $8.8 Trillion Economic Wave by FY23
A recent report by Enmasse and Praxis Global Alliance reveals that India boasts 247 million entrepreneurial households poised to drive the country's next economic wave, generating an impressive $8.8 trillion transaction value in FY23. These households are expected to contribute significantly to India's economic growth, with their core transaction value (CTV) projected to grow at 12.7% (year-on-year) to reach $95.2 trillion by FY43. The report introduces the key metric of core transaction value, shedding light on an undercapitalized market poised for substantial growth.
Characterized by diverse income sources, these entrepreneurial households leverage their income and curated borrowings to create a transaction-intensive portfolio, spanning high-priority goods, services, and business spending. Jyotsna Krishnan, Managing Partner at Elever Equity and Co-founder of Enmasse emphasizes the transformative growth potential of this vibrant economic segment.
The study also highlights that brands targeting entrepreneurial households have demonstrated attractive returns on capital employed (ROCE), comparable to the Nifty50 in FY23. Madhur Singal, Managing Partner and CEO at Praxis Global Alliance, underscores that the $8.8 trillion core transaction value uncovered signifies more than just a number it is a testament to the untapped potential and vibrant economic activity within these households.
