India’s retail industry is one of the fastest growing in the world and ranks among the top three preferred global retail destinations. Supported by healthy economic growth, rising disposable incomes, urbanisation, and evolving consumer preferences, the sector is witnessing rapid expansion not just in metros but also across tier II and III cities. India also ranks high globally in terms of per capita retail store availability, reflecting its vast consumer reach and strong market potential.
In FY24, India’s direct selling industry was valued at Rs. 22,022 crore (US$ 2.57 billion). The fast-moving consumer goods (FMCG) market, a key driver of retail, stood US$ 288 billion in 2025 and is projected to reach US$ 1,150 billion by 2034F, growing at a CAGR of 16.64% during 2026-34. In February 2026, India’s CPI inflation stood at 3.21% (provisional), with rural inflation at 3.37% and urban inflation at 3.02%, while food inflation was 3.47%.
India's fastest consumer growth is coming from Tier-II and Tier-III cities, which are adding nearly 100 million new consumers to branded and organised retail by 2030. The rise of these cities is driving national consumption patterns, digital payments, and the expansion of D2C brands with faster trial and repeat purchases.鈥�
E-commerce has emerged as a key growth engine, with India’s online retail market valued at Rs. US$ 115 billion in 2025. It is expected to grow to US$ 260 billion by 2030F, driven by digital payments, internet penetration, and rising consumer adoption. India is currently the world’s second-largest e-retail market and, as of FY25, has the third-highest number of online shoppers globally. The e-retail segment alone is projected to generate Rs. 14,56,220-16,27,540 crore (US$ 170-190 billion) in GMV by 2030, supported by an expanding shopper base and innovative business models, according to Bain & Company and Flipkart.
Organised retail is also on a strong growth trajectory, and it is projected to reach US$ 230 billion by 2030, driven by rising disposable incomes, increasing urbanisation and evolving consumer preferences, according to a Deloitte–RAI report. By 2030, India’s overall retail sector is expected to exceed Rs. 1,37,10,400 crore (US$ 1.6 trillion), up from Rs. 81,57,859 crore (US$ 952 billion) in 2024. To support this expansion, India’s seven major cities are expected to add 16.6 million sq. ft. of prime retail space in new shopping malls by the end of 2026, according to Anarock.
Global players continue to view India as one of the most promising markets, with strong interest in tapping into its vast consumer base. Competitive labour costs, resource availability, and supportive government measures such as tax incentives and FDI-friendly policies have further enhanced India’s appeal as a retail investment hub.
India’s retail sector leasing reached over 4 million square feet in Q4 2025, driving total retail leasing to a record ~8.9 million square feet in 2025 across the top seven cities. Delhi-NCR led the leasing with new mall constructions, facilitating new store openings in key micro markets. D2C brands are expanding their physical presence in fashion, apparel, jewellery, cosmetics, and wellness categories. India’s retail sector continued to witness strong expansion in 2026, with retailers opening new stores across multiple formats and categories, supported by rising investments, expanding mall supply and growing consumer demand across major cities.
As of November 2025, Reliance Retail operates 20,000 stores across with a retail area of over 77.4 million sq. ft. in India.
India’s luxury retail market continued to witness strong growth in 2025, with overall retail leasing reaching a record ~8.9 million sq. ft., driven by rising demand from premium and luxury brands across major cities. The growth was supported by experience-led flagship stores, premium retail formats and increasing affluent consumer spending.
India’s e-commerce market was valued at US$ 129.72 billion in 2025 and is projected to reach US$ 651.10 billion by 2034, driven by rising internet penetration, digital payments, and increasing consumer demand for online retail. India’s digital economy is expected to touch Rs. 68,55,200 crore (US$ 800 billion) by 2030 from Rs. 3,444,738 crore (US$ 402 billion) in 2023 and employs around 14.67 million workers.
India's retail market is poised to reach US$ 1 trillion by 2030. This growth is driven by rising incomes, faster digital adoption, and the rise of an aspirational consumer class. New retail formats like e-commerce, quick commerce, and D2C brands are scaling faster than conventional companies, indicating a structural shift in shopping habits and huge investor interest.
India’s private final consumption expenditure (PFCE) is estimated at Rs. 2,19,63,865 crore (US$ 2485.30 billion) in FY26 (First Advance Estimates), growing 8.2% over the previous year and accounting for 61.5% of GDP. As per Economic Survey 2025-26 PFCE will grew 7.0% in FY26, supported by low inflation, stable employment and rising real purchasing power.
By 2030, India’s per capita income is expected to exceed Rs. 3,49,000 (US$ 4,000) from Rs 2,34,859 (US$ 2,740) in FY25, unlocking new business opportunities across sectors. Expanding digital commerce, growing access to credit, and fintech-driven financial inclusion further accelerate this consumption boom.
The Indian Retail sector has seen good investments and developments in the recent past.
In January 2026, Tim Hortons India opened two new outlets at Navi Mumbai International Airport, strengthening its presence across high-footfall transit locations.
In January 2026, IKEA said it will invest over Rs. 20,000 crores (US$ 2.2 billion) in India over the next five years to expand its retail network, logistics and local sourcing.
In November 2025, LuLu Group revived its Visakhapatnam mall project after signing a fresh MoU with the Andhra Pradesh government, with the project expected to create new direct and indirect jobs.
The India e-commerce warehousing market size reached US$ 10.0 billion in 2025, and expected to reach US$ 39.1 billion by 2034, exhibiting a growth rate (CAGR) of 16.42% during 2026-34.
In January 2025, Hindustan Unilever acquires 90.5% stake in beauty brand Minimalist at Rs. 2,955 crore (US$ 341.1 million) valuation.
In February 2026, Reliance Consumer Products acquired 100% equity stake in Southern Health Foods Private Limited, maker of the Manna brand, for Rs. 156.42 crore (US$ 17.70 million), adding to its health foods and staples portfolio.
India’s retail trading sector attracted Rs. 36,241.37 crore (US$ 4.97 billion) FDIs between April 2000-December 2025.
To improve the business climate and make it simpler for foreign companies to register fully owned subsidiaries in India, the Indian government has implemented several rules, regulations, and policies.
In FY25, Zudio more than doubled its store count, from approximately 341 to 765 outlets across 235 cities, driving its milestone of over Rs. 8,569 crore (US$ 1 billion) in revenue.
In 2025, over 30 global brands entered India, underscoring the country’s growing appeal for international retailers and premium consumer brands.
In February 2026, Nykaa opened 11 new stores and entered four new cities in Q3 FY26, taking its total store count to 276.
As of February 2026, UPI transactions reached 20.39 billion worth Rs. 26.84 lakh crore (US$ 303.69 billion), registering a 27% year-on-year growth in transaction volume and a 22% increase in transaction value, reflecting rapid growth in digital payment adoption across retail merchant outlets.
From FY20 to FY25, digital transactions have surged, exceeding 65,000 crores in number and totalling more than Rs. 1,20,00,00,000 crore (US$ 140 trillion).
According to Bain & Company’s 2026 e-retail report, India’s online retail market is witnessing a gradual shift from cash-on-delivery (COD) to digital payment modes such as UPI-based payments at delivery, reflecting rising adoption of digital transactions across online shopping platforms.
The Government has approved 51% FDI in multi-brand retail and 100% FDI in single-brand retail under the automatic route, which is expected to give a boost to Ease of Doing Business and Make in India schemes, with plans to allow 100% FDI in E-commerce.
E-commerce is expanding steadily in the country. Customers have the ever-increasing choice of products at the lowest rates. The online retail market in India is projected to US$ 260 billion by 2030 from US$ 115 billion in 2025, due to rising online shoppers in the country. India’s high growth potential compared to global peers has made it a highly favourable destination. India is projected to emerge as the world’s third-largest economy by 2030, with its GDP expected to reach Rs. 6,25,53,700 crore (US$ 7.3 trillion). Healthy economic growth, changing demographic profile, increasing disposable income, urbanisation, changing consumer tastes and preferences are some of the factors driving growth in the organised retail market in India.
India’s retail sector is set to continue its dynamic growth, driven by rising incomes, digital adoption, and expanding consumer demand across urban and emerging markets. With strong investment momentum, robust e-commerce expansion, and supportive government policies, the sector is poised to create new business opportunities, enhance consumer experiences, and reinforce India’s position as a leading global retail destination in the years ahead.
