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India’s retail sector is on a transformative growth path, with market size expected to nearly double from $1.06 trillion in 2024 to $1.93 trillion by 2030, according to a new Deloitte–FICCI report titled “Spotting India’s PRIME Innovation Moment.”
The report highlights several key trends that will shape the future of India's consumer and retail landscape, including the rapid rise of digital commerce, growing economic power in smaller cities, and a major consumption shift driven by Gen Z.
Online retail is set to grow more than threefold—from $75 billion in 2024 to $260 billion by 2030—boosting its share of the total retail market from 7% to 14%. Quick commerce is also experiencing explosive growth, expanding at a CAGR of 70–80% and now operating in over 80 cities, making India one of the fastest-growing markets globally in this segment.
A standout insight from the report is the growing financial influence of Gen Z, which is expected to contribute 43% of India’s total consumption in 2025. With a direct spending power of $250 billion, this digitally native generation is set to shape demand across categories—from food and fashion to tech and travel.
Tier 2 and 3 cities are also emerging as key growth engines, accounting for more than 60% of all e-commerce transactions. Their increasing connectivity, rising disposable incomes, and digital adoption are redefining the dynamics of the Indian consumer market.
The report also noted a significant shift in consumer preferences toward local and sustainable brands. Approximately 68% of Indian consumers prefer homegrown products in food and beverages, 55% in home décor, and 53% in personal care. Sustainability is now a decisive factor for younger consumers, with over 60% of Gen Z and millennials favouring brands with transparent and eco-friendly practices.
“India’s consumer ecosystem is entering a defining decade, fuelled by a young, digitally fluent population and the rising economic influence of Tier II and III cities,” said Anand Ramanathan, Partner and Consumer Industry Leader, Deloitte South Asia. “The next wave of growth will be defined by hyper-personalisation, omni-channel integration, and sustainable local manufacturing.”
With the sector already contributing over 10% to India’s GDP and employing nearly 8% of the workforce, analysts believe that favourable trade policies, domestic demand, and supply chain resilience will help India’s retail market weather global economic uncertainties and unlock long-term growth.
