The Transformative Power Of Entrepreneurial Households In Shaping The Future Of The Indian Economy According to the report, India's 247 million entrepreneurial households drove an $8.8 trillion transaction value in FY23 unleashing a new economic landscape.
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A recent report outlines and estimates the economic power of Industrious Communities or the EPIC Opportunity. The EPIC Opportunity is defined as the transformative power of Entrepreneurial Households (EHs) in shaping the future of the Indian economy and driving the next generation of Indian entrepreneurship.
According to the report, India's 247 million entrepreneurial households drove an $8.8 trillion transaction value in FY23 unleashing a new economic landscape. It states that India is home to 247 million entrepreneurial households, as of FY23, with multiple income streams and a high volume of transactions.
These EHs will be drivers of the next economic wave in India, and below we list out some of the salient points from the report:
1. In FY23 their Core Transaction Value (CTV)TM represented a $8.8 Tn market, set to grow 12.7% Y-o-Y (CAGR) to $95.2 Tn by FY43.
2. Notably, businesses serving EHs have yielded a return on capital employed (ROCE) comparable to that of the Nifty50 in FY23 and have built sizeable businesses.
3. The 247 million households are characterised by multiple diversified sources of income. They turn these multiple sources of income and curated borrowings into a transaction-intense portfolio of high-priority goods and services, and business spends.
4. The report also estimated the economic vitality of Entrepreneurial Households based on their overall transaction volumes rather than incomes or expenditures. The new metric: Core Transaction Value (CTV) reveals an enormous market, poised for growth, which remains undercapitalised.
4. The report concludes that these Entrepreneurial Households will be the drivers of India's next economic wave, with a CTV of $8.8 Tn in FY23. This CTV is set to grow 12.7% Y-o-Y (CAGR) to $95.2 Tn in the next twenty years.
5. The report is based on 3,000 households in 100 districts across India.
6. The EPIC Opportunity report underscores a paradigm shift in how households are approached as elements of the India story. Business spending of a typical EH is expected to grow at 12.6% CAGR, reaching $129K in FY43. The report also shows that brands focusing on EHs have showcased attractive Returns on Capital Employed (ROCE), which is comparable with the Nifty50 in FY23.
Source: Entrepreneurial Households: A Multi-Trillion Dollar EPIC Opportunity' - a report by Praxis Global Alliance™ for Enmasse
