Indian Retail Market Pegged at Rs 190 Lakh Crore by 2034: Retailers Embracing Diversity to Gain

The Indian retail market is poised for substantial growth, with expectations to reach over Rs 190 lakh crore by 2034. Retailers who embrace the country’s diverse demographics and contrasting consumer behaviors stand to gain the most, according to a joint report by the Boston Consulting Group (BCG) and the Retailers Association of India (RAI).

The report, titled ‘Winning in Bharat & India: The Retail Kaleidoscope,’ highlights the impressive growth of the Indian retail market, which expanded from Rs 35 lakh crore in 2014 to Rs 82 lakh crore in 2024, growing at over 8.9% in the last decade. This growth trajectory has been driven by India’s economic expansion and an increasingly discerning and diverse consumer base.

*Balancing Aspiration and Affordability*

The report emphasizes that retailers need to recognize the distinct consumer groups within the country, each with unique needs even within a single city. To succeed, retailers must carefully choose where they want to play, balancing aspiration with affordability.

“The Indian retail market is large and growing, expected to reach over Rs 190 trillion by 2034. This expansion has outpaced overall consumption, highlighting the sector’s resilience and strong momentum,” the report states.

At the heart of this growth is a diverse consumer base. As more households move into affluence, value-for-money remains a crucial factor in decision-making. Retailers must strike a careful balance between driving aspiration and maintaining affordability.

*Navigating Complexities*

While opportunities abound, the report notes that retailers will need to navigate complexities to be successful. India’s population is marked by striking contrasts, including a burgeoning middle class, rising affluence, price-conscious consumers, a digitally savvy Gen Z, an increasingly significant 45-plus cohort, and an expanding female workforce shaping new purchase behaviors.

These intersecting trends create a “retail kaleidoscope,” where opportunities are plentiful but complexity also increases.

*Omnichannel Dynamics and Local Pride*

The report highlights the importance of omnichannel dynamics, with surging digital payment transactions and increasing online penetration. Despite this, over 58% of purchase pathways remain purely offline.

While consumers are inspired by global trends and brands, there is also a strong drive for local pride. Retailers who can embrace India’s diverse demographics and contrasting consumer behaviors will be well-positioned for success.

*Strategic Execution*

By developing strategies that merge consumer-centric insights with sharp execution—both online and offline—retailers can keep pace with the nation’s growth and set the benchmark for the next decade of retail success. “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 notes.

Successful retailers have deliberately chosen the consumer segments to prioritize. Some excel by championing efficiency and value in mass grocery or fast fashion, while others command premium segments through exclusive assortments, superior in-store experiences, and advanced digital tools.

In all cases, a well-aligned operating model—covering merchandise, pricing, in-store and omnichannel experience, network, and promotion—is crucial to delivering on the chosen customer value proposition.

Stay tuned for further updates on the Indian retail market and strategies for success in this dynamic sector.