Shopify has launched the Shopify Entrepreneurship Index, highlighting the significant growth and influence of Indian entrepreneurs on the country’s economy.
The data reveals the crucial role played by Indian entrepreneurs on Shopify, contributing to the national GDP and creating employment opportunities.
In 2022, Indian entrepreneurs contributed Rs 139 billion to the national GDP, an increase of 9.6 per cent from the year 2021.
Additionally, Indian merchants on Shopify generated Rs 301 billion in business activity, reflecting a 9.8 per cent growth in 2022.
The Index showcases the rapid growth of ecommerce in India, attracting a surge of entrepreneurs seeking to expand their businesses.
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 per cent increase on 2021 and a positive sign of India’s burgeoning market for employment opportunities.
According to Statista, India’s ecommerce market will grow from USD 71 billion in 2023 to USD 119 billion in 2027.
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, as per the platform’s data.
Bharati Balakrishnan, Director and Country Head – India and SouthEast Asia, commented, “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.”
India has further potential to fully capitalise on the nation’s entrepreneurial potential by investing in cross-border commerce and export strategies, she said.
Balakrishnan added, “Entrepreneurs in India saw a 1.5 per cent decline in exports in 2022 compared to the previous year with just 18 per cent of Indian merchants now selling cross-border online.”
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.
Further insight from the data shows:
1. Globally the USA ranks first, followed by Lithuania and Romania.
2. 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.
3. Combined, Shopify merchants around the world supported 5.2 million jobs (+8.3 per cent from 2021), generated USD 27.7 billion of exports (+7 per cent), contributed USD 229.3 billion to GDP (+8.8 per cent) and created USD 490.5 billio in economic activity (+8.6 per cent).
4. Vietnam saw the second highest number of jobs supported (471,474) only behind the US.
5. 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 USD 17.7 billion AUD.
6. Hong Kong significantly punched above its weight, ranking 9th and merchant impact on GDP growing 17.8 per cent.
7. Japan is Asia’s success story ranked 10th in the Index with the impact of its entrepreneurs up across every metric: exports increased 29 per cent, business activity and jobs supported are up 24 per cent, and GDP impact is up 23 per cent.