India, the fastest-growing major economy, is set to become the third-largest by GDP by 2030, driving a Rs 190 trillion retail market by 2034

The Boston Consulting Group (BCG) and the Retailers Association of India (RAI) have unveiled their latest report, Winning in Bharat & India: The Retail Kaleidoscope, at the Retail Leadership Summit 2025. This year’s report delves into India’s consumption-driven growth, the diverse consumer landscape, and the strategic imperatives for retailers to remain competitive in this heterogeneous and evolving market.

India is the fastest-growing major economy and is projected to become the third-largest by GDP by 2030. At the same time, consumption in India has been expanding at a pace ahead of other large economies.

The Indian retail market is large and growing – expected to reach INR 190 Trillion by 2034. This expansion has outpaced overall consumption, highlighting the sector’s resilience and strong momentum.

Despite occasional periods of sharp volatility, the overall growth trajectory remains strong, with organized retail consistently outpacing the broader market

The report underscores the importance of recognizing India’s multiple consumer segments and adapting retail strategies to meet their distinctive needs. There are many large segments in Indian retail – by category and within categories – each significantly sized and attractive enough, a change from the past. It explores the dual forces shaping retail—demographic shifts such as rising affluence and evolving age dynamics, alongside contrasting consumer behaviors, including premiumization and. value-conscious spending, global aspirations and local pride. Winning in Bharat and India requires retailers to recognize the different opportunities – and pick sharply where they want to play – and play there well

The report further outlines how best-performing retailers have successfully scaled by leveraging efficiencies, adapting to regional nuances, and making clear strategic choices about their online and offline operations.

Key Findings of the Report

India’s Retail Market Outlook

• Long-term consumption growth remains strong despite periodic fluctuations, with increased spending on discretionary and experience-driven categories.
• India’s retail market will continue to grow in line with consumption growth and provide a INR 190 Tn+ opportunity by 2034 – organized retail likely to benefit more from the growth.

Demographic Trends Shaping Retail

• Affluent households are projected to triple by 2030, creating significant opportunities in premium and luxury retail, while the mass segment remains a dominant consumer base
• Women’s workforce participation has doubled in past 5 years, closing gap with men, this has driven growth in women-centric categories such as beauty, personal care, and fashion.
• Gen Z and millennials form large consumer cohorts, necessitating alignment with their values and digital-first habits. Meanwhile, over the next decade, the 45+ age group will become the largest cohort leading to new consumer demands emerging, including preventive consumer health.

Consumer Behavior Trends

• Rising affluence coexists with value-consciousness, making it essential for retailers to strike a balance between premium offerings and ‘value for money’
• Despite rapid e-commerce growth, with online shopping penetration reaching to 50%, 58% of purchase pathways remain purely offline
• Consumers navigate between global aspirations and local pride, necessitating a harmonized approach that blends international trends with culturally relevant offerings

Strategic Imperatives for Retailers: To succeed in India’s complex retail landscape, retailers must:

• Identify and prioritize key demographic segments, recognize the interplay of contrasting consumer trends, and make strategic choices to define a clear and compelling value proposition
• Develop a clear strategy based on the value proposition, and support it with a tailored operating model for winning execution

Retailers that have thrived have done so by making deliberate strategic choices, leveraging deep consumer insights, and ensuring operational agility to adapt to an evolving landscape.

Retail Success Stories & Adaptation

Indian retailers have successfully navigated a rapidly evolving market by making strategic choices that align with both demographic shifts and changing consumer behaviors. Leading retailers have then alignment their operating model including merchandize, pricing strategy, network, in-store experience, choice of omni and supply chain to deliver on the proposition

Few examples of retailers in India that have successfully adapted to these evolving trends by implementing targeted strategies:

· A leading value fashion retailer Delivers on-trend merchandise to young, price-conscious consumers at mass-market prices by maintaining a high share of fresh inventory and leveraging an agile and efficient supply chain.

· A prominent jewelry brand provides differentiated designs, backed by trust and reliability. Utilizes premium store formats and well-trained staff to cater to diverse customer needs, bridging high-end and everyday segments

· A fast-growing quick-commerce platform taps urban consumers’ rising convenience demands through hyper-local assortments, focused marketing around dark-store launches, and swift deliveries—driving rapid adoption among time-strapped shoppers.

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