India’s retail sector is worth $1.06 trillion and is projected to double to $1.93 trillion by 2030 (Deloitte-FICCI Report). Online retail is $75 billion in 2024 and is likely to grow to $260 billion by 2030. Online retail’s share in the total retail will grow from 7 per cent to 14 per cent.
The growth will not be solely on the basis of distribution expansion. It will be dependant on the ability to anticipate and respond to shifting consumer behavior.
Gen Z has emerged as a major consumer group. In 2025, their direct spending is projected to reach $250 billion. There is growth seen in fashion, personal care and footwear. Their consumption share in nation’s total consumption is 43 per cent.
Small players grow quickly through e-commerce and quick commerce. They respond faster, especially in younger cohorts.
Quick commerce is available in 80 cities and towns. It is expanding rapidly — 70 to 80 per cent yearly. Smaller cities are emerging as growth engines. They account for over 60 per cent of all e-commerce transactions.
There are challenges — last mile delivery, digital literacy and uneven infrastructure.
Consumption is shifting towards premium products, sustainability and indigenous products.
Retail contributes over 10 per cent to country’s GDP and employs about 8 per cent of the workforce.