A recent study has uncovered a significant economic force within India: its entrepreneurial households. With approximately 247 million such households across the nation, they are set to become key drivers of India's economic surge. In the fiscal year 2023 alone, these households are projected to generate a staggering transaction value of $8.8 trillion.
The report introduces a new metric called core transaction value (CTV), developed by analysts to measure the scale of this market. It highlights a vast potential for growth that has yet to be fully capitalized upon.
According to research conducted by Praxis Global Alliance in collaboration with Enmasse, an international network, these entrepreneurial households are expected to play a crucial role in India's economic growth trajectory. The CTV associated with these households is forecasted to increase by 12.7% annually, reaching an impressive $95.2 trillion by fiscal year 2043.
These households boast diverse income streams, adeptly managing their earnings and borrowing to invest in high-priority goods, services, and business ventures, thereby driving significant transaction activity.
Jyotsna Krishnan, Managing Partner at Elevar Equity and Co-founder of Enmasse, emphasized the transformative potential of this segment, stating, "The research into core transaction value and the identification of 247 million entrepreneurial households reveals a vibrant economic segment poised for transformative growth."
The report also highlights the financial performance of brands targeting these entrepreneurial households. It indicates that such brands have demonstrated attractive returns on capital employed (ROCE), comparable to those of companies listed in the Nifty50 index in fiscal year 2023.
Madhur Singal, Managing Partner and CEO at Praxis Global Alliance, underscored the significance of the $8.8 trillion core transaction value uncovered by the study, describing it not just as a number but as a testament to the untapped potential and vibrancy of economic activity within these households.
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