India's retail sector among fastest growing consumer markets globally: RIL

Reliance says India's retail sector is poised for sustained growth, backed by tech, rural demand, and income gains, while citing challenges in rentals and manpower

India’s largest retailer Reliance Industries has said that the country was on track to become the third- largest retail market by 2030, driven by government policies that are expected to boost disposable incomes and consumption.

 

The observations were made in its annual report for the financial year 2025 (FY25).

 

“Government initiatives, including tax relief and supportive economic policies are expected to boost disposable incomes and stimulate consumption. With strong rural demand and projected GDP growth, the retail sector is poised for sustained growth,” the oil to retail conglomerate said.

 

The firm said that outlook for India’s retail industry was positive, which was characterised by technological progress, market expansion, greater consumer engagement, and launch of innovative products.

 

 

India’s retail sector has been one of the fastest growing consumer markets in the world, the firm said in the report.

 

Reliance’s retail segment invested ₹33,696 crore in FY 2024-25, up 37.5 per cent from ₹24,506 crore in FY 2023-24, reflecting its focus on infrastructure development and expansion. 

 

The retailer, which is present across consumer electronics, fashion and lifestyle, grocery and consumer brands saw its gross revenue at ₹3,30,943 crore in FY25, a growth of 7.9 per cent over FY24.

 

“The business continued its strong track record of profit growth registering an Ebitda (earnings before interest, tax, depreciation and amortisation) of ₹25,094 crore, higher by 8.6 per cent Y-o-Y. The business opened 2,659 stores during the year, taking the total store count to 19,340 stores, the largest store footprint for any retailer in the country. The registered customer base crossed 349 million,” the company said.

 

The company also said that upward pressure on rentals -- due to demand-supply mismatch -- for high quality real estate and availability of trained manpower to support rapid expansion were challenges.

 

It also flagged macroeconomic factors affecting consumer spending patterns.

 

The retailer said that opportunities like rising consumer aspirations and growing disposable incomes present significant growth potential.

 

In its industry overview, the retailer said that the Indian retail industry has evolved into one of the most dynamic and rapidly expanding sectors and contributes to the development of the country.

 

Citing a recent report by the Boston Consulting Group and the Retailers Association of India, it said that India’s retail sector is projected to reach ₹190 trillion by 2034, growing at a compounded annual growth rate (CAGR) of 9 per cent.