Young consumers, ecommerce growth, and Tier II city expansion are driving a decade of transformation in India’s USD 1.06 trillion retail economy
India’s retail and consumer ecosystem is on the brink of a historic transformation, according to the new Deloitte–FICCI report. Valued at $1.06 trillion in 2024, the sector is projected to nearly double to $1.93 trillion by 2030, growing at a compound annual rate of 10 percent.
The report attributes this surge to India’s digitally fluent youth, rising disposable incomes, and the rapid expansion of ecommerce, which together are reshaping consumption patterns and business models. Retail currently contributes over 10 percent to the GDP and employs nearly 8 percent of the workforce, positioning it as one of India’s most critical economic engines.
Gen Z, with a projected $250 billion spending power by 2025, is at the centre of this shift—driving demand for premium, sustainable, and aspirational products. Meanwhile, Tier II and III cities are emerging as new growth hubs, now accounting for over 60 percent of e-commerce transactions. These regions are not only redefining consumption but also attracting large-scale investments in physical retail infrastructure.
The report identifies quick commerce as one of India’s most disruptive trends. Operating in over 80 cities and expanding at 70–80 percent CAGR, the segment has made India the world’s first scaled quick-commerce market, revolutionising last-mile delivery and everyday consumer convenience.
Other major consumer shifts include the rise of digital-first shopping, growing trust in ‘Made in India’ products, and the increasing importance of sustainability in purchase decisions. With evolving Free Trade Agreements (FTAs) and tariff realignments, Indian brands are also gaining stronger export opportunities and a competitive edge in global markets.
“India’s consumer ecosystem is entering a defining decade,” said Anand Ramanathan, Partner & Consumer Industry Leader at Deloitte South Asia. “The next wave of growth will be driven less by distribution expansion and more by the ability to anticipate shifting consumer behaviours and regional nuances.”
