India's retail sector projected to nearly double to Rs. 1,68,00,650 crore (US$ 1.93 trillion) by 2030: Deloitte-FICCI

India’s retail sector is set to nearly double to Rs. 1,68,00,650 crore (US$ 1.93 trillion) by 2030, growing at a 10% Compound annual growth rate (CAGR), according to a Deloitte-FICCI report. Valued at Rs. 92,27,300 crore (US$ 1.06 trillion) in 2024, the sector is being fuelled by rising purchasing power, Gen Z’s direct spending capacity of Rs. 21,76,250 crore (US$ 250 billion), and robust domestic consumption that cushions against global volatility. The report titled Spotting India’s PRIME Innovation Moment highlighted the rapid rise of digital adoption, premiumisation, e-commerce, and quick commerce as key growth drivers. With evolving Free Trade Agreements (FTAs) and tariff realignments boosting competitiveness, Indian products are poised to capture global markets with cost advantages. Deloitte noted that India’s Fast-moving consumer goods (FMCG) and retail industries are entering a transformative decade, marked by purpose-led innovation, sustainability, and consumer behaviour shifts across both metros and tier II & III cities.

The report also underscored the disruptive role of technology and consumer preferences in shaping retail growth. Online marketplaces now influence 73% of purchase decisions, with peer recommendations (51%) and YouTube reviews (40%) emerging as strong alternatives to traditional influencer marketing. India’s direct-to-consumer (D2C) market, which crossed Rs. 6,96,400 crore (US$ 80 billion) in 2024, is expected to exceed Rs. 8,70,500 crore (US$ 100 billion) in 2025. Quick commerce, growing at a 70-80% CAGR, has already made India the world’s first scaled market, operating across 80 cities. Over 60% of e-commerce transactions now come from tier II & III cities, signalling retail growth beyond metros. Consumer preference for Indian-made goods is also rising, with 68% favouring local brands in food and beverages, 55% in home décor, and 53% in personal care. Deloitte concluded that with a decisive strategy, India can establish global benchmarks in innovation and resilience while nearly doubling its retail market by 2030.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.