India has been ranked 26th on the Shopify Entrepreneurship Index, a measure of the economic impact created by Indian entrepreneurs using the e-commerce platform Shopify. The index, which involved 40 countries, was released last week and was a collaborative effort between Shopify and Deloitte. It assessed the GDP impact, business activity impact, jobs supported, and exports generated by millions of entrepreneurs on Shopify in 2022. The United States, Lithuania, and Romania secured the top positions in the index.
To determine the rankings, the impact generated by each country was evaluated in relation to “national values for each country and state” by utilizing publicly available data from reputable sources such as the International Monetary Fund (IMF), the Organization for Economic Cooperation and Development (OECD), the International Labour Organization (ILO), and government statistical agencies. This data comparison helped in assessing the relative impact of entrepreneurship on each country’s economy and enabled the rankings to be established.
Based on the index findings, Indian entrepreneurs utilizing Shopify made a significant contribution of Rs 13,900 crore to India’s GDP in 2022, experiencing a notable increase of 9.6 percent compared to 2021. Additionally, their entrepreneurial endeavors generated Rs 30,100 crore in business activity, indicating a growth of 9.8 percent in 2022 compared to the previous year.
According to Shopify, The index “showcases the extraordinary growth of e-commerce 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,”.
Shopify, as an e-commerce platform, provides businesses with the ability to establish their own online stores and facilitate product sales. It has garnered a substantial user base, boasting over 1.75 million sellers on a global scale. According to data from analytics company BuiltWith, out of a total of 6.6 million e-commerce sites built worldwide thus far, Shopify has been utilized to create 4.1 million live websites. Within this count, there were 41,077 websites originating from India.
According to the index, Indian merchants operating on Shopify played a significant role in employment generation, creating a total of 2.23 lakh jobs in 2022. This represents a notable growth of 10 percent compared to the previous year, showcasing the positive impact of these entrepreneurs on the job market.
Bharati Balakrishnan, who serves as the Director and Country Head for India and Southeast Asia at Shopify, expressed that “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.”
In contrast, there was a decline of 1.5 percent in exports from Indian merchants on Shopify in 2022, amounting to approximately Rs 704 crore, when compared to the previous year. It was observed that only 18 percent of Indian merchants were engaged in selling cross-border online, indicating a relatively lower participation in international trade.
India secured a higher rank than several countries, including Israel (27), Switzerland (28), Vietnam (30), Indonesia (31), Brazil (37), Argentina (38), Portugal (39), and South Africa (40) in the Shopify Entrepreneurship Index. In terms of regional performance, Asia displayed dominance, with four countries from the region—Australia, China, Hong Kong, and Japan—ranking among the top 10. Furthermore, Asia accounted for a total of 10 countries within the top 40 rankings of the Index.
