New Delhi, Feb 27 – India’s organised retail sector is witnessing unprecedented growth, with projections indicating a market size of $230 billion by 2030, according to a joint report by Deloitte and the Retailers Association of India (RAI). The sector is expanding at a compound annual growth rate (CAGR) of 10%, driven by rising disposable incomes, evolving consumer preferences, and increased access to credit.
Rising Income Levels – A growing middle class with higher purchasing power is fueling retail demand.
Gen Z Influence – Younger consumers are reshaping shopping behaviors with their preference for digital and experiential retail.
Easy Access to Credit – A surge in financial inclusivity has democratized consumption, enabling a larger demographic to engage in discretionary spending.
Shift Towards Organised Retail – Traditional retail is giving way to modern, structured formats as consumers seek convenience, quality, and variety.
The expansion of credit accessibility has been a game changer, allowing more consumers to participate in India’s booming discretionary spending market. Notably, private consumption in India has surged from $1 trillion in 2013 to $2.1 trillion in 2024, outpacing major economies like the U.S., China, and Germany.
Kumar Rajagopalan, CEO of RAI, highlighted the immense opportunities available to businesses that align with the evolving retail landscape. "As organised retail and new commerce models expand, companies that adapt will unlock significant potential for growth and innovation," he noted.
With a rapidly transforming retail ecosystem, businesses that leverage these shifts stand to benefit from India's booming consumer market in the coming years.
Key Growth Drivers
The report highlights several forces shaping India’s retail landscape, including: Rising Income Levels – A growing middle class with higher purchasing power is fueling retail demand. Gen Z Influence – Younger consumers are reshaping shopping behaviors with their preference for digital and experiential retail. Easy Access to Credit – A surge in financial inclusivity has democratized consumption, enabling a larger demographic to engage in discretionary spending. Shift Towards Organised Retail – Traditional retail is giving way to modern, structured formats as consumers seek convenience, quality, and variety.The expansion of credit accessibility has been a game changer, allowing more consumers to participate in India’s booming discretionary spending market. Notably, private consumption in India has surged from $1 trillion in 2013 to $2.1 trillion in 2024, outpacing major economies like the U.S., China, and Germany.
Expert Insights
Anand Ramanathan, Partner and Consumer Industry Leader at Deloitte India, emphasized that expanding digital commerce and increasing discretionary spending are reshaping brand strategies, compelling businesses to adapt to new consumer expectations.Kumar Rajagopalan, CEO of RAI, highlighted the immense opportunities available to businesses that align with the evolving retail landscape. "As organised retail and new commerce models expand, companies that adapt will unlock significant potential for growth and innovation," he noted.
With a rapidly transforming retail ecosystem, businesses that leverage these shifts stand to benefit from India's booming consumer market in the coming years.
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