India retail market set to reach $2 trillion in next decade: Report

India, being a bright spot among major economies, is projected to reach a $2 trillion retail market in the next 10 years. The country is the fastest growing among the top five global economies and is expected to become the third largest by GDP in 2030.

A report by BCG and RAI anticipates a 9-10% growth in the retail market, with store expansions and increased urbanization driving consumption in tier 1 to 4 cities. Despite the growth of e-commerce, the report highlights a slower pace in net new user addition and the need to re-imagine the online proposition.

Abheek Singhi of BCG emphasizes the need for successful retailers to challenge the perceived growth profitability trade-off. Organized retailers are urged to sustain performance, grow shares, and adapt to key shifts impacting the pace and shape of growth in the industry.

Kumar Rajagopalan, CEO of RAI, stresses the importance of personalized customer experiences, new collaborations, and leveraging AI for efficiency to drive unprecedented growth and global competitiveness in India’s retail industry. Income growth and consumer optimism on personal income outlook are key factors in shaping consumer spending habits.