New Delhi, May 17, 2023 : Shopify, a leading global commerce company, has beta launched the Shopify Entrepreneurship Index, highlighting the remarkable growth and impact of Indian entrepreneurs on the country’s economy.
The new data reveals that Indian entrepreneurs on Shopify are driving the economy forward with their contribution to national GDP and employment opportunities. Entrepreneurs across India contributed ₹139 billion to national GDP in 2022, an increase of 9.6% from 2021. They also saw strong business growth in 2022, with Indian merchants on Shopify generating ₹301 billion in business activity, up from 9.8% in 2022.
The Index showcases the extraordinary growth of ecommerce in India, prompting an influx of entrepreneurs entering the market to grow their business. This surge can be attributed to India’s commitment to digital transformation and technological advancements, which have fostered an environment conducive to promoting and enabling entrepreneurial endeavours.
One of the key indicators of India’s entrepreneurial success is the creation of over 2 lakh (223,920) jobs in 2022, which is a 10% increase on 2021 and a positive sign of India’s burgeoning market for employment opportunities.
Statista estimates that India’s e-commerce market will grow from $71 billion USD in 2023 to $119 billion USD in 2027, underscoring the value of entrepreneurs in driving economic and social growth and driving positive employment opportunities.
The strong contribution of entrepreneurs to the nation’s economy sees India now ranked in the top 30 countries globally in the Shopify Entrepreneur Index which ranks countries based on the impact of entrepreneurs in Shopify’s ecosystem on their overall economy.
Ms Bharati Balakrishnan, Director and Country Head – India and SouthEast Asia, said,
“This achievement underscores India’s flourishing ecommerce and retail ecosystem, driven by a vast population and diverse market, which attracts ambitious commerce entrepreneurs seeking new avenues of growth. As India continues its journey towards digitalisation and economic expansion, its ranking on the Index is a testament to the country’s thriving digital landscape and the opportunity for forward-thinking entrepreneurs to build high-growth retail brands online.”
Still, India has further potential to fully capitalise on the nation’s entrepreneurial potential by investing in cross-border commerce and export strategies. Entrepreneurs in India saw a 1.5% decline in exports in 2022 compared to the previous year with just 18% of Indian merchants now selling cross-border online
VAHDAM® India is one example of how brands can accelerate growth by exporting top-quality Indian products to a worldwide audience. Indian products are often repackaged and sold by foreign companies, however, Bala Sarda, founder of VAHDAM India, capitalised on the opportunity to establish India’s largest homegrown, global wellness brand. Now, VAHDAM ships to four million customers in over 130 countries, solidifying a robust global presence and tripling online revenue.
The Shopify Entrepreneurship Index is a new study conducted by Deloitte using data on the millions of entrepreneurs in the Shopify ecosystem and supplemented with IMF, OECD, and World Bank data for the purposes of economic modelling.
The study covers the GDP impact, business activity, jobs supported, and exports generated by Shopify entrepreneurs compared with the national values of each country or state. The ranking is released on a quarterly basis, making it one of the most timely and frequently updated ways to understand the state of entrepreneurship around the world. This is the beta version of the Index. In the future, Shopify will share more data aimed to inspire smart policies, and give leaders the insights they need to harness the power of entrepreneurship.
Further insight from the data shows:
● Globally the USA ranks first, followed by Lithuania and Romania.
● Regionally, Asia dominates the Index with four countries in the top 10 — Australia, China, Hong Kong and Japan — and 10 countries in the top 40.
● Combined, Shopify merchants around the world supported 5.2 million jobs (+8.3% from 2021), generated $27.7 billion USD of exports (+7%), contributed $229.3 billion USD to GDP (+8.8%) and created $490.5 billion USD in economic activity (+8.6%).
● Vietnam saw the second highest number of jobs supported (471,474) only behind the US.
● Australia led the ranking for Asia, ranked 6th globally, just behind the US and UK, and has the third-highest GDP impact from entrepreneurs at $17.7 billion AUD.
● Hong Kong significantly punched above its weight, ranking 9th and merchant impact on GDP growing 17.8%.
● Japan is Asia’s success story ranked 10th in the Index with the impact of its entrepreneurs up across every metric: exports increased 29%, business activity and jobs supported are up 24%, and GDP impact is up 23%.