Indian retail sector to reach $1.93 trn by 2030: Deloitte-FICCI report

Anchored by a deep home market which can act as a buffer against global trade volatility, the Indian retail sector is projected to nearly double to $1.93 trillion by 2030 from $1.06 trillion in 2024, growing at a compound annual growth rate (CAGR) of 10 per cent, according to a Deloitte–FICCI report issued on Wednesday.

 

Moreover, evolving Free Trade Agreements (FTAs) and tariff realignments are further enhancing India’s export competitiveness, allowing ‘Made in India’ products to reach new markets with reduced barriers and cost advantages, the report pointed out.

 

“The rising purchasing power, including Gen Z’s direct spending capacity of $250 billion, is not only sustaining domestic demand, but also fuelling brand confidence to scale internationally. This convergence of domestic resilience and improved global market access positions India as both a consumption powerhouse and a formidable export base,” stated the report titled ‘Spotting India's PRIME Innovation Moment’.

   

“The Indian retail and consumer landscape is undergoing a transformation, amplified by a digital first, premium-yet-inclusive consumption wave, rapid expansion of quick commerce, and the explosive growth of direct-to-consumer (D2C) brands,” it added.

 

According to the report, online marketplaces now influence 73 per cent of purchase decisions, with YouTube reviews (40 per cent) and peer recommendations (51 per cent) emerging as trusted alternatives to traditional influencer marketing. It further said that India is the world’s first scaled quick commerce market, operating in over 80 cities and growing at a CAGR of 70–80 per cent.

 

“Consumers today are not just buyers; they are empowered decision-makers, and their preferences are evolving rapidly. In India, digital platforms already drive about 17 per cent of total fast-moving consumer goods (FMCG) consumption, with quick commerce generating 35 per cent of FMCG brands’ e-commerce revenue,” said Kumar Venkatasubramanian, chief executive officer at P&G India, and chairman of the FICCI FMCG committee at the summit.

 

According to the report, the quick commerce segment is projected to reach $35 billion in Gross Merchandise Value (GMV) by 2030, supported by lakhs of delivery partners and an increasingly electric fleet – demonstrating a growth in demand for immediacy.

 

“This ongoing growth of agile models like quick commerce and e-commerce, powered by a surge in digital payments, has created unprecedented opportunities for enhancing consumer experience,” Kumar added, pointing to the need for flexible and agile supply chains, which can become a competitive differentiator.