India's retail market is on the verge of huge growth, with market size expected to grow from $1.06 trillion in 2024 to $1.93 trillion by 2030, as per a new Deloitte–FICCI report.
The report also points out that shifting trade patterns, new Free Trade Agreements (FTAs), and tariff changes are enhancing the competitiveness of Indian exports.
The retail landscape of the country is also undergoing swift digitalization. A tidal wave of digital-first, premium but mass consumption, growth of quick commerce, and growth of direct-to-consumer (D2C) brands are redefining the industry.
Digital platforms already drive a significant amount of consumer behavior, and their impact is felt in 73% of purchase decisions. YouTube reviews (40%) and peer recommendations (51%) have overtaken conventional influencer channels in terms of credibility.
India has become the world’s first large-scale quick commerce market, operating in over 80 cities and growing at an impressive 70–80% CAGR. The segment is expected to reach $35 billion in GMV by 2030, driven by a large delivery workforce and a growing fleet of electric vehicles.
“Consumers today are not just buyers, they are empowered decision-makers,” said Kumar Venkatasubramanian, CEO of P&G India and Chairman of FICCI’s FMCG committee.
He pointed out that online platforms currently represent 17% of overall FMCG consumption, while rapid commerce generates 35% of e-commerce revenues for FMCG companies.
Kumar further stated that the immediacy, convenience, and digital payments trend is opening up new means of increasing the consumer experience. Versatile and nimble supply chains will be critical for businesses looking to turn this growth into a sustained competitive advantage.
The report also estimates that the growth, at a 10% CAGR, will be spurred by a robust domestic market, offering protection from international trade fluctuations.
Reduced barriers to entry and cost efficiencies are making "Made in India" products penetrate global markets more efficiently. Domestic demand is being spurred at home by increasing incomes and a young consumer base. Gen Z alone has a direct purchasing power of $250 billion, driving demand at home and pushing Indian brands to go global.
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