The Indian retail market is expected to reach over Rs 190 trillion by 2034, a recent report said, adding that the retailers capable of embracing the country’s diverse demographics and contrasting consumer behaviours stand to gain the most.

A report prepared jointly by the Boston Consulting Group (BCG) and the Retailers Association of India (RAI) said with distinct consumer groups, each with their own unique needs even within a city, retailers will need to recognise the different opportunities and pick sharply where they want to play to be successful in ‘Bharat’ and ‘India’.

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The retail market in India reached a size of Rs 82 trillion in 2024, up from Rs 35 trillion in 2014, growing at over 8.9 per cent in the last decade, driven by India’s economic growth and an increasingly discerning and diverse consumer base.

The report titled ‘Winning in Bharat & India: The Retail Kaleidoscope’ said India’s consumption growth trajectory has been secular, barring during the Covid-19 pandemic and it is set to witness the highest growth in consumption between 2024-2034, it noted.

“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,” it noted.

“Even as India remains the fastest-growing major economy, its population is marked by striking contrasts, a burgeoning middle class and rising affluence alongside price-conscious consumers, a digitally savvy Gen Z coexisting with an increasingly significant 45-plus cohort, and an expanding female workforce helping shape new purchase behaviours,” the report highlighted.

These trends intersect to create what can be called a “retail kaleidoscope”, where opportunity abounds but complexity also rises, it noted.