The report states that increased income, spending power will play crucial role in driving retail growth momentum
Led by an increased discretionary spending and enhanced access and value, the size of the Indian retail market has grown at 8.9 per cent in the last decade to reach Rs 82 trillion in 2024, from Rs 35 trillion in 2014. A report has stated that the market is further expected to exceed Rs 190 trillion by 2034.
A report titled “Winning in Bharat and India: The Retail Kaleidoscope”, jointly developed by Boston Consulting Group (BCG) and Retailers Association of India (RAI) has stated that in the next decade, Indian retail market will continue to grow at around nine per cent annually, to exceed Rs 190 trillion by 2034. As per the report, driven by increased income, spending power, supply side investments and regulatory actions, the retail growth momentum is expected to continue.
Industry leaders are optimistic about growth but emphasise the need for strategic choices in India’s diverse market. “The post-pandemic surge has normalised, and in the short term, everyone is experiencing challenges. However, these challenges also push us to improve. In the long term, we remain bullish that the growth story will stay intact, driven by rising per capita consumption and increasing ticket prices,” stated Karthik Balagopalan, Managing Director of Puma.
The report highlighted that India’s growth trajectory is driven by consumption, which has proven to be both robust and sustainable. While there is some year-on-year volatility, the multi-year secular growth outlook remains steady and strong.
“Retailers that have successfully established themselves within a focused target group are now gaining widespread acceptance. Even within a single city, there are distinct consumer groups, each with their own unique needs. Retailers must identify and capitalize on these specific opportunities to succeed,” the report quoted Lalit Agarwal, Founder and CMD of VMart.
As per the report, education and workforce participation have triggered a ‘higher spending’ and more ‘discerning’ women cohort. The report added that more Indians are becoming affluent. However, value for money related factors continue to be the top purchase drivers.
There has been an exponential growth in digital due to convenience as the online shopping penetration has jumped from 18 per cent in 2019 to 50 per cent in 2024. However, physical remains critical as around 58 per cent purchase pathways across categories are purely offline.
