India’s retail sector is projected to nearly double in size to Rs. 1,68,00,650 crore (US$ 1.93 trillion) by 2030, growing at a robust 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’s expansion is being fuelled by rising purchasing power, Gen Z’s direct spending capacity of Rs. 21,76,250 crore (US$ 250 billion), and resilient domestic consumption that cushions against global market volatility.

The Deloitte-FICCI report, titled Spotting India’s PRIME Innovation Moment, highlighted several key growth drivers: digital adoption, premiumisation, e-commerce, and quick commerce, all contributing to a transformative decade for Indian retail. With evolving Free Trade Agreements (FTAs) and tariff realignments, Indian products are expected to become globally competitive due to cost advantages and innovative strategies.

Technological Disruption and Consumer Preferences:
Technology and changing consumer behaviour are shaping retail growth significantly. Online marketplaces influence 73% of purchase decisions, while peer recommendations (51%) and YouTube reviews (40%) are emerging as powerful 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 surpass Rs. 8,70,500 crore (US$ 100 billion) in 2025.

Quick commerce has grown rapidly at a 70–80% CAGR, making India the world’s first scaled quick commerce market, operating across 80 cities. Over 60% of e-commerce transactions now originate from tier II and III cities, signalling retail growth beyond metropolitan areas.

Rising Preference for Local Products:
Consumer preference for Indian-made goods is increasing. Around 68% of consumers prefer local brands in food and beverages, 55% in home décor, and 53% in personal care. This shift aligns with broader trends towards purpose-led innovation, sustainability, and premiumisation, creating opportunities for Indian brands to capture both domestic and global markets.

Future Outlook:
Deloitte concludes that with a decisive strategy, technological adoption, and innovation focus, India’s retail sector can establish global benchmarks in resilience, efficiency, and consumer engagement. By 2030, India is poised to witness a transformative retail landscape, nearly doubling the market size and becoming a leading hub for FMCG, e-commerce, quick commerce, and D2C innovations.

The combination of digital transformation, rising disposable income, Gen Z consumer power, tier II & III city growth, and sustainability trends positions India’s retail sector for long-term expansion and global competitiveness.

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The Current active IPO are ARC Insulation & Insulators, Mangal Electrical Industries, LGT Business Connextions, Vikram Solar, Gem Aromatics, Shreeji Shipping Global, Patel Retail.

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