Mumbai, Feb 16 (NationPress) The retail landscape in India is on the brink of a significant transformation, with projections indicating that its market size will more than double to Rs 210–215 trillion by 2035, up from approximately Rs 90–95 trillion in 2025, as revealed in a recent collaborative report published on Monday.

This insightful report, presented by the Boston Consulting Group (BCG) alongside the Retailers Association of India (RAI) during the Retail Leadership Summit 2026, highlights the robust consumption trends across the nation and emphasizes the pivotal role of technology, particularly artificial intelligence (AI), in influencing the forthcoming phase of retail evolution.

The analysis delves into the fundamental changes reshaping the Indian retail sector, shifting consumer behaviors, and the strategic decisions that retailers need to adopt to stay competitive.

India maintains its status as one of the fastest-growing major economies globally, forecasting a GDP growth rate of 8 percent in 2025.

The momentum is significantly fueled by strong private consumption, especially in discretionary spending and services.

The report anticipates that India is on course to become the world’s third-largest economy by 2030, presenting substantial opportunities for retailers in the coming decade.

It asserts that AI is revolutionizing not just the customer-facing experiences but also the fundamental retail operations such as merchandising, supply chain management, marketing, and customer service.

A comprehensive, function-oriented AI transformation could unlock performance improvements ranging from 40 percent to 60 percent, compared to mere 10 percent to 15 percent enhancements from isolated AI applications.

Nevertheless, the study points out that nearly 70 percent of the value derived from AI stems from building internal capabilities, redesigning processes, and effective change management rather than solely from technology.

Abheek Singhi, Managing Director and Senior Partner at BCG, remarked that India’s retail sector is on track to evolve into a nearly Rs 200 trillion opportunity in the next decade.

Bharat Mimani, Managing Director and Partner at BCG, noted that retail is entering a crucial phase where AI is becoming an essential driver of competitive edge rather than just an experimental tool.

Kumar Rajagopalan, CEO of RAI, emphasized that the forthcoming Rs 200 trillion opportunity in the next decade will not be captured merely through sales growth.

He underlined that retailers must integrate AI throughout the shopper journey, revamp their talent and operational frameworks, and view transformation as an ongoing process rather than a one-time initiative.