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The Deloitte FICCI report reveals that India's retail market, which stood at USD 1.06 trillion earlier this week, is expected to grow at a 10 percent annual rate to reach nearly USD 1.9 trillion by the end of the decade. Domestic demand, a vital buffer against global shocks combined with rising digital adoption, premiumisation, quick commerce, and D2C growth, is reshaping the landscape. Gen Z's spending power, preference for "Made in India", and strong performance beyond major metros are fueling confidence and innovation across retail and FMCG sectors.
India's retail landscape is undergoing a powerful transformation, with recent insights revealing that the market now falls just above USD 1.06 trillion and is projected to nearly double by 2030, expanding at about a 10 percent compound annual growth rate. This surge is being backed by a robust domestic market that provides stability even amid external uncertainties. Advertisement
The report highlights several pillars of this shift. Digital adoption, commoditisation of premium offerings, the rise of e-commerce, and swift quick-commerce services are all reshaping how consumers shop. Quick commerce, in particular, is expanding at a staggering 70-80 percent CAGR and already covers more than 80 Indian cities.
Gen Z is emerging as a critical force accounting for close to 43 percent of consumption next year, with direct spending power of USD 250 billion. This is reshaping demand patterns in fashion, electronics, personal care and beyond.
Tier II and III cities are powering much of the momentum. Over 60 percent of e-commerce activity now comes from these non-metro areas, signaling a clear retail shift beyond major urban centers.
The pull of locally made products is also increasing. Around 68 percent of consumers prefer Indian brands in food and beverages, 55 percent in home d'cor, and 53 percent in personal care.
India's online retail sector is due for a steep climb from USD 75 billion now to approximately USD 260 billion by the decade's close as digital channels double their share in overall retail.
Amid evolving trade policies and more favorable FTAs, Indian brands are gaining stronger footholds internationally thanks to cost advantages and eased access.
According to an industry leader at Deloitte South Asia, the sector is entering a defining era where consumer behaviour shifts, regional nuances, and purpose-led innovation will shape the next growth wave rather than just expanding distribution. The same note explained that India could set global benchmarks in resilience, innovation, and sustainability as it inches toward that USD 1.9 trillion milestone.
Source PTI
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