Over 247 million Indian EHs willing to invest in quality healthcare, education: Study

Hyderabad: A new report has revealed that 247 million Entrepreneurial Households (EHs) are increasingly willing to invest in quality healthcare and education if services are delivered locally.

According to the EPIC World study, conducted across 7,700 households in 12 states, over 60% of EHs experience significant service gaps. In response, 74% are willing to pay more for better education and 78% for improved healthcare, with this willingness rising sharply when travel times exceed an hour.

The findings reveal a powerful shift in India’s rural and semi-urban economies. The findings challenge long-held assumptions about rural spending power and underscore the commercial potential of serving this emerging middle class.

Entrepreneurial Households: The Backbone of Local Economies

The survey, managed by 1Lattice and overseen by Prashant Kolleri (formerly of NielsenIQ), highlights the resilience and growth of EHs—households with diversified income streams and rising economic aspirations. A striking 86% of these households report multiple sources of income, and 61% have two or more earning members. This financial diversification has translated into optimism: 84% expect their household income to rise in the next two years.

Infrastructure improvements are a major driver of this confidence. Nearly 91% of households report better roads, electricity, and digital connectivity, while 81% use UPI and digital payment tools more frequently, integrating themselves further into the formal economy.

Gaps in Healthcare and Education Spark Willingness to Pay

Despite economic progress, access to core services like healthcare and education remains a challenge. More than 60% of households cite local service gaps, prompting them to express a willingness to pay more for better access. This demand intensifies with distance—when travel exceeds one hour, 86% are willing to pay a premium for healthcare, and 81% for education.

EPIC World’s report suggests that these gaps represent untapped commercial potential. Businesses already serving EHs are thriving; the EHI Index shows a 22% 5-year revenue CAGR and a 16% 5-year aggregate ROE as of March 2024. “Entrepreneurial Households represent over 70% of India’s population, yet they continue to be underserved by mainstream businesses,” said Jyotsna Krishnan, Co-founder and CEO of EPIC World. “This report is our effort to bring greater visibility to their evolving aspirations and commercial readiness.”

Local Opportunities: The Shift from Migration to Sustainable Growth

One of the most revealing aspects of the study is the strengthening of local economies. About 80% of households report more job opportunities within their villages, reflecting a shift away from migration as the sole path to economic progress. Furthermore, 89% say their family incomes have improved over the past decade, signaling growing financial stability.

Rising female participation in the workforce is another trend reshaping these communities. According to the survey, 87% of households report that women are increasingly involved in income-generating activities. Among them, 92% recognize their own growing economic role, not just as contributors but as decision-makers. This evolution is expected to influence purchasing behaviors, especially in healthcare, education, and household products.

Ashish Dhir, Senior Director of Consumer and Retail at 1Lattice, emphasized the significance of this change: “This study is among the most detailed and granular investigations of India’s Entrepreneurial Households to date. By covering 7,700 households across 173 districts and 12 states, we’ve captured how financial behavior, digital adoption, and investment priorities are evolving at the household level.”

The Case for Specialist Local Businesses

The report argues that businesses aiming to serve EHs must be deeply rooted in local communities and leverage what it terms the “phygital advantage”—a blend of physical presence and digital capabilities. “Companies that are locally rooted, tech-enabled with a phygital presence, and built on trust will be well-placed to serve this customer segment,” said Krishnan. She added that EPIC World is focusing on building “blue-chip companies” aimed specifically at EHs, emphasizing the market’s readiness for long-term investment.

Attributes of successful businesses in this space include:

Community-driven trust through local representatives

Phygital models that combine physical outreach with digital scaling

Asset-light infrastructure to enable rapid growth

Customized solutions to match diverse household income flows.

Future Aspirations and Investment Priorities

The study also sheds light on the aspirations of these households. Over the next two years, 58% plan to invest in housing, 56% in household gadgets, and 52% in vehicles. This planned spending indicates a growing appetite for better living standards and durable goods, pointing to a deeper integration into mainstream consumer markets.

The report concludes that Entrepreneurial Households are not just passive participants in India’s growth story—they are active drivers of local economies. To unlock this potential, businesses must adapt to localized needs, address service gaps, and engage with this emerging consumer class in ways that are contextually relevant and community-driven.