Indian retail market is expected to reach over Rs 190 trillion by 2034: Report

New Delhi: The Indian retail market is expected to reach over Rs 190 lakh crore by 2034 and retailers capable of embracing the country’s diverse demographics and contrasting consumer behaviours stand to gain the most, according to a report.

With distinct consumer groups, each with their own unique needs even within a city, retailers will need to recognise the different opportunities and pick sharply where they want to play to be successful in ‘Bharat’ and ‘India’, said the report prepared jointly by the Boston Consulting Group (BCG) and the Retailers Association of India (RAI).

The retail market in India reached a size of Rs 82 lakh crore in 2024, up from Rs 35 lakh crore in 2014, growing at over 8.9 per cent in the last decade, driven by India’s economic growth and an increasingly discerning and diverse consumer base, said the report titled ‘Winning in Bharat & India: The Retail Kaleidoscope’.

India’s consumption growth trajectory has been secular, barring during the COVID-19 pandemic and it is set to witness the highest growth in consumption between 2024-2034, it noted.

“The Indian retail market is large and growing, expected to reach over Rs 190 trillion by 2034. This expansion has outpaced overall consumption, highlighting



the sector’s resilience and strong momentum,” it said.

At the heart of this expansion lies an increasingly discerning and diverse consumer base. More households are moving into affluence and at the same time, value-for-money remains key to decision-making, hence retailers must strike a careful balance between driving aspiration and maintaining affordability. While there are opportunities to tap, retailers will have to negotiate complexities in order to be successful, it noted.

“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 report highlighted.

These trends intersect to create what can be called a “retail kaleidoscope”, where opportunity abounds but complexity also rises, it noted. The report pointed out that omnichannel dynamic has been crucial with surging digital payment transactions and online penetration continuing to climb. Yet the majority of purchase pathways, over 58 per cent, still remain purely offline.