India is the fastest-growing major economy and is projected to become the third-largest by GDP by 2030
New Delhi: 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. The report delves into India’s dynamic retail landscape, highlighting key trends, critical shifts, and strategic imperatives for retailers navigating this complex yet opportunity-rich market.
India is the fastest-growing major economy and is projected to become the third-largest by GDP by 2030. The retail market is on an accelerated growth trajectory, expected to reach INR 190 Trillion by 2034, driven by expanding consumption. Organized retail is poised to benefit significantly, consistently outpacing the broader market despite occasional volatility.
The report emphasizes the importance of recognizing India’s diverse demographic contrasts, including rising affluence alongside a vast middle class, an ageing population coexisting with a large mid-aged adult demographic, and accelerating workforce participation by women. Additionally, consumer preferences reflect inherent contrasts—global aspirations balanced with local pride, digital and physical shopping journeys, and premium choices alongside value-consciousness.
This dynamic landscape presents immense opportunities but also introduces complexity. To succeed, retailers must identify key consumer cohorts, define compelling value propositions, and tailor operating models to cater to varied demands effectively.
Key Findings from the Report
1. India’s Retail Market Outlook:
- Long-term consumption growth remains robust, with increased spending on discretionary and experience-driven categories.
- Organized retail is expected to capture a significant share of the INR 190 Trillion+ opportunity by 2034, reflecting resilience and strong momentum.
2. Demographic Trends Shaping Retail:
- Affluent households are projected to triple by 2030, driving growth in premium and luxury segments.
- Women’s workforce participation has doubled over the past five years, boosting demand in women-centric categories such as beauty, personal care, and fashion.
- Gen Z and millennials, along with an emerging 45+ age group, necessitate alignment with their digital-first habits and evolving needs.
3. Evolving Consumer Behavior:
- Despite e-commerce growth, 58% of purchase pathways remain purely offline, highlighting the continued relevance of physical stores.
- Consumers balance global aspirations with local pride, urging retailers to blend international trends with culturally relevant offerings.
Strategic Imperatives for Retailers
To thrive in this complex landscape, retailers must:
- Identify and prioritize key demographic segments while acknowledging contrasting consumer trends.
- Develop clear value propositions backed by tailored operating models for effective execution.
- Leverage operational agility and strategic choices to align online and offline operations.
Retail Success Stories and Adaptation
The report illustrates how leading Indian retailers have scaled by making strategic choices, leveraging regional nuances, and optimizing operational efficiency. Success stories include:
- A value fashion retailer delivering on-trend merchandise through agile supply chain strategies.
- A prominent jewelry brand leveraging premium store formats and reliable service to cater to diverse customer needs.
- A quick-commerce platform tapping urban convenience demands through hyper-local assortments and rapid deliveries.
Kumar Rajagopalan, CEO, Retailers Association of India (RAI), added, “Winning in India’s retail landscape requires strategic agility and an acute understanding of regional diversity. A one-size-fits-all approach won’t work—success lies in making tailored choices and adapting strategies to local needs.”
