India's Retail Sector Poised to Hit Rs 190 Lakh Crore by 2034 Amid Rising Consumption

Synopsis

India is on the brink of a major retail boom, projected to reach Rs 190 lakh crore by 2034 as it becomes the third-largest economy by GDP by 2030. This growth is bolstered by increasing consumer spending and shifting demographics, offering diverse opportunities for retailers.

Key Takeaways

India's retail market projected to reach Rs 190 lakh crore by 2034.
Consumption growth outpaces other major economies.
Affluent households expected to triple by 2030.
Women’s workforce participation doubled in the last 5 years.
Aligning with Gen Z and millennials is crucial for retailers.

Mumbai, Feb 27 (NationPress) India, recognized as the fastest-growing major economy, is on track to become the third-largest economy by GDP by 2030, propelling a Rs 190 lakh crore retail market by 2034, according to a recent report published on Thursday.

Consumption in the nation has been increasing at a rate that surpasses other significant economies. The Indian retail market is expanding, and this growth has surpassed overall consumption, underscoring the sector's robustness and strong forward momentum, as indicated by the report from the Boston Consulting Group (BCG) and the Retailers Association of India (RAI).

Over the past decade, India's retail market has surged from Rs 35 lakh crore to Rs 82 lakh crore, achieving a remarkable 9 percent growth rate.

"Predictions suggest it could reach Rs 200 lakh crore in the coming decade, presenting a myriad of opportunities that require varied operating models to achieve a successful strategy. The potential for multiple trillion-rupee turnover retailers by 2035 is significant," stated BCG Managing Director and Senior Partner, Abheek Singhi.

The number of affluent households is expected to triple by 2030, opening up substantial prospects in premium and luxury retail, while the mass market continues to be a predominant consumer base.

While there are occasional fluctuations, the overall growth trajectory remains strong, with organized retail steadily outpacing the broader market, the report noted.

Participation of women in the workforce has doubled in the last 5 years, narrowing the gap with men, which has fueled growth in women-focused categories like beauty, personal care, and fashion.

With Gen Z and millennials making up significant consumer segments, aligning with their values and digital-first preferences is crucial. Additionally, in the coming decade, the 45+ age group will emerge as the largest demographic, leading to new consumer demands such as preventive health care, according to the report.

Despite the rapid rise of e-commerce, with online shopping penetration reaching 50 percent, 58 percent of shopping pathways remain entirely offline. Consumers balance global aspirations with local pride, necessitating a blended approach that merges international trends with culturally relevant offerings.

Indian retailers have adeptly navigated a swiftly changing market by making strategic decisions that align with evolving demographics and shifting consumer behaviors, the report concluded.