Entrepreneurial Households Drive $8.8 Trillion Economic Activity in 2023

A new report reveals that India has 247 million entrepreneurial households that are set to significantly drive the country's economy. These households are responsible for a whopping $8.8 trillion in transaction value for the fiscal year 2023, and this is expected to grow to $95.2 trillion by 2043, with an annual growth rate of 12.7%.
The report introduces a new term, Core Transaction Value (CTV), which measures the total economic activity of these households, including all their earnings, borrowings, and spending. This metric shows a large, untapped market with great growth potential.
These entrepreneurial households generate multiple income streams and use them along with borrowed funds to engage in high-value transactions involving important goods and services and business investments. This vibrant economic segment represents a significant opportunity for growth.
Key points from the report include:
- Entrepreneurial households will be key players in India's next economic wave.
- Brands targeting these households have seen high returns on investment, comparable to the top companies listed in the Nifty50 stock index.
- The report underscores the importance of these households in driving future economic growth and prosperity in India, likening its potential impact to Dr. C K Prahalad’s influential "Fortune at the Bottom of the Pyramid."
For entrepreneurs and investors, this presents a unique opportunity to innovate and invest in this rapidly growing market , potentially reaping substantial returns. The report is based on comprehensive research, including a survey of 3,000 households across 100 districts in India. 
What Are Entrepreneurial Households?

There are 247 million households in India that generate multiple sources of income and engage in frequent financial transactions. These households are called "entrepreneurial households."

Current and Future Economic Impact


In 2023, these households contributed a total transaction value of $8.8 trillion to India's economy.


By 2043, this value is expected to grow to $95.2 trillion, increasing at an annual rate of 12.7%.


Core Transaction Value (CTV)


The report introduces a new metric called Core Transaction Value (CTV), which measures all financial activities within a household, including earnings, spending on business activities, and essential goods and services. This gives a more comprehensive picture of a household's economic impact than just income or consumption.


Opportunities and Implications


For Business Founders and Entrepreneurs: There is a huge opportunity to create products and services that meet the needs of these dynamic households.


For Investors: Investing in this market can yield returns comparable to top-performing stocks in India.


For Economic Researchers: CTV offers a new way to analyze and understand household prosperity, influencing future policies and economic strategies.


Why This Matters


The report compares the potential of these entrepreneurial households to the transformative economic opportunities highlighted in past influential studies. It suggests that focusing on these households can significantly boost India's economic growth.


Report Background


This report is a collaborative effort by Enmasse, Praxis Global Alliance, and Elevar Equity, combining extensive research and surveys across India.