Indian Retail Market Set to Reach ₹190 Lakh Crore by 2034 as Consumption Surges
India, the world’s fastest-growing major economy, is set to become the third largest by GDP by 2030, fueling the expansion of its retail market to ₹190 lakh crore by 2034, according to a new report.
India’s Economy on Track to Become Third Largest by 2030
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Mumbai: India, the world’s fastest-growing major economy, is set to become the third largest by GDP by 2030, fueling the expansion of its retail market to ₹190 lakh crore by 2034, according to a new report.
Retail Market Growth Outpacing Overall Consumption
The report, released by Boston Consulting Group (BCG) and the Retailers Association of India (RAI), highlights that India’s retail market has shown remarkable resilience and growth. Over the past decade, the market has expanded from ₹35 lakh crore to ₹82 lakh crore, achieving a 9% annual growth rate.
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Future Projections and Retail Opportunities
BCG Managing Director and Senior Partner Abheek Singhi predicts that India’s retail market will reach ₹200 lakh crore by 2035, offering diverse and large-scale opportunities. The report suggests that multiple trillion-rupee retailers could emerge by 2035.
Rising Affluent Households and Luxury Retail Boom
With affluent households expected to triple by 2030, premium and luxury retail sectors are poised for rapid expansion. However, the mass market segment will continue to dominate the consumer base.
Organized Retail and E-Commerce Expansion
Despite occasional economic volatility, the organized retail sector continues to grow faster than the broader market. While e-commerce penetration has reached 50%, the report states that 58% of purchases still happen offline, showing the importance of brick-and-mortar stores alongside digital retail.
Changing Consumer Demographics and Shopping Trends
- Women’s workforce participation has doubled in the past five years, fueling growth in women-centric categories such as beauty, personal care, and fashion.
- Gen Z and millennials are shaping retail trends with digital-first habits, while the 45+ age group will become the largest consumer cohort in the next decade, leading to a rise in demand for preventive healthcare products.
- Indian consumers are balancing global aspirations with local pride, requiring retailers to blend international trends with culturally relevant offerings.
Conclusion: Retailers Adapting to Changing Consumer Behavior
The report concludes that Indian retailers have successfully navigated the dynamic market landscape by adopting strategic approaches that align with demographic shifts and evolving consumer behaviors. With continued growth and innovation, the Indian retail market is set to reach new heights in the coming decade.
