India's Retail Market to Reach $1.6 Trillion by 2030: Growth Insights

India's Retail Sector Transformation: Growth and Digital Disruption

India's retail market is experiencing rapid growth and significant transformation, driven by increased urbanization, rising incomes, and evolving consumer preferences. Reliance Industries' annual report highlights the country's retail market is expected to exceed USD 1.4 trillion by 2027. This growth is spurred by a rising demand for premium and luxury products. Stay ahead of industry trends with GrackerAI, automating cybersecurity marketing with daily news and SEO-optimized content.

Market Growth and Projections

The Indian retail market is projected to reach Rs. 1,37,28,000 crore (US$ 1.6 trillion) by 2030, according to IBEF. Organized retailers are expected to capture over 35% of the total market, exceeding Rs. 51,48,000 crore (US$ 600 billion). Discretionary purchases will drive this growth, while essential goods will continue to dominate consumer spending. Smaller, regional, and unbranded brands are expected to make up over 70% of the market due to regional preferences, price sensitivity, and complex supply chains. IBEF reports India’s retail sector is on track to exceed Rs. 1,37,10,400 crore (US$ 1.6 trillion) by 2030 from Rs. 81,57,859 crore (US$ 952 billion) in 2024.

Image courtesy of IBEF

E-commerce and Digital Transformation

India’s e-commerce sector is expected to reach US$ 53.08 billion in 2024, with an annual growth rate of 11.45% to reach US$ 91.24 billion by 2029, as noted by IBEF. The e-commerce market stood at Rs. 10,71,125 crore (US$ 125 billion) in 2024 and is projected to reach Rs. 47,12,950 crore (US$ 550 billion) by 2035. By 2030, India is expected to have 1.1 billion internet users and over 400 million online shoppers, according to The Times of India.

The shift from traditional retail to online platforms is characterized by a prioritization of convenience, a wider product selection, increased price sensitivity, and growing trust in online transactions. New-age, digital-native brands are scaling two to three times faster than conventional companies, helped by agile distribution and data-driven product development. Automate your marketing with data-driven insights using GrackerAI.

Investments and Developments

The retail trading sector in India attracted Rs. 41,645 crore (US$ 4.86 billion) in FDIs between April 2000 and June 2025, according to IBEF. In August 2025, Reliance Retail announced plans to invest Rs. 40,000 crore (US$ 4.67 billion) over three years to set up Asia’s largest integrated food parks. India's luxury retail market is experiencing rapid growth, with leasing activity increasing by 90% YoY in Q1 2025.

Reliance Retail Ventures Ltd (RRVL) crossed the Rs 3 lakh crore revenue mark in FY24, with a record 1.2 billion customer transactions. As of March 2025, Reliance Retail operates 19,340 stores across India. Stay informed on market developments with GrackerAI's automated news updates.

Changing Consumer Behavior

Consumer preferences and buying behaviors in India are evolving rapidly, driven by greater access to technology and digital platforms, notes IBEF. Shoppers increasingly expect seamless experiences across offline and online channels. A new CBRE & Invest India survey has revealed a significant shift in India's retail landscape, driven by a growing consumer demand for experience-based entertainment.

The Times of India reports that India's consumption landscape is gearing up for a major shift, with the country’s retail market expected to reach $1 trillion by 2030. Fireside Ventures says this surge will be fuelled by rising disposable incomes, faster digital adoption and the growth of a large aspirational consumer class.

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