India’s Retail Market Expected To Cross Rs 190 Lakh Crore By 2034: Report

The report found that consumption growth trajectory remained secular in India, and is expected to clock the highest growth in consumption between 2024 to 2034.

The study observed that more households are shifting towards affluence and value-for-money remains a crucial factor for decision making.

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The Indian retail market is expected to reach more than Rs 190 lakh crore by 2034, a recent report said. The study, titled ‘Winning in Bharat & India: The Retail Kaleidoscope’ was prepared jointly by the Boston Consulting Group (BCG) and the Retailers Association of India (RAI). It observed that retailers will need to identify the distinct consumer groups with their unique needs even within a city and decide how to capitalise on these.

The study noted that the domestic retail market reached a size of Rs 82 lakh crore in 2024, growing at more than 8.9 per cent from Rs 35 lakh crore recorded in 2014, reported PTI. This surge was driven by the country’s economic growth and a jump in the diversity of the consumer base in the nation.

The report found that consumption growth trajectory remained secular in India, and is expected to clock the highest growth in consumption between 2024 to 2034. The expansion in the retail market has happened at a faster pace than overall consumption, pointing out the sector’s resilience and robust momentum.

Retailers Need To Balance Aspirations And Affordability

The study observed that more households are shifting towards affluence and value-for-money remains a crucial factor for decision making. As such, it noted that retailers need to maintain a balance between building aspiration and maintaining affordability. 

“Even as India remains the fastest-growing major economy, its population is marked by striking contrasts, a burgeoning middle class and rising affluence alongside price-conscious consumers, a digitally savvy Gen Z coexisting with an increasingly significant 45-plus cohort, and an expanding female workforce helping shape new purchase behaviours,” the study pointed out.

The study observed that retailers need to recognise the diversity of opportunities and pick ‘where they want to play’. While some can choose to focus on efficiency and value in fast fashion or mass grocery, others can look to premium segments via selected assortments and advanced digital tools, the report said.