Retail Industry in India

India’s e-commerce sector is expected to reach US$ 53.08 billion in 2024, with an annual growth rate of 11.45% to reach US$ 91.24 billion by 2029.

Advantage India

Robust
Demand

*Reliance Industries, India’s largest retailer, stated that the country is set to emerge as the world’s third-largest retail market by 2030, supported by government initiatives aimed at enhancing disposable incomes and driving consumption.

*India's retail sector leasing surged to 3.2 million square feet in Q3 2025, marking a 65% YoY growth 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.

*As of FY25, India’s has the third highest number of e-retail shoppers globally.

Innovation
In Financing

* Collective efforts of financial houses and banks with retailers are enabling consumers to go for durable products with easy credit.

* India’s consumer and retail sector closed 139 deals worth Rs. 32,562 crore (US$ 3.8 billion) in Q1 CY25 marking a 65% surge in deal volume and a 29% rise in value over the previous quarter, led by major deals such as Temasek’s Rs. 8,569 crore (US$ 1 billion) investment in Haldiram’s and Wilmar International’s Rs. 12,339 crore (US$ 1.4 billion) acquisition of Adani Wilmar’s staples business.

Increasing
Investments

* Due to India’s wealth of resources, availability of labor at relatively low costs, and special investment wages such tax breaks, etc., foreign corporations prefer to invest here.

* India’s retail trading sector attracted Rs. 41,645 crore (US$ 4.86 billion) FDIs between April 2000-June 2025.

* In August 2025, Reliance Retail announced plans to invest Rs. 40,000 crore (US$ 4.67 billion) over three years to set up Asia’s largest integrated food parks, leveraging AI, robotics and sustainable technologies to drive its target of Rs. 1,00,000 crore (US$ 11.67 billion) in annual FMCG revenue.

Policy
Support

* To improve the business climate and make it simpler for foreign companies to register fully owned subsidiaries in India, the Indian government has implemented a number of rules, regulations, and policies.

Snapshot Showcase Infographics Reports

Last updated: Nov, 2025

Retail Industry Report

Nov, 2025

Introduction

The Indian retail industry has emerged as one of the most dynamic and fast-paced sectors, driven by strong consumer demand and the entry of new players. Contributing over 10% to the country’s GDP and around 8% to employment, India is today the world’s third-largest retail market and ranked 63 in the World Bank’s Doing Business 2023 report. With its vast middle class and largely untapped potential, India continues to attract global retail giants seeking to enter high-growth markets.

Rising purchasing power, especially among urban consumers, is reshaping spending patterns. Branded goods across categories such as apparel, cosmetics, footwear, watches, beverages, food, and jewellery are increasingly becoming part of everyday consumption and lifestyle. India’s retail sector is on track to grow from Rs. 81,57,859 crore (US$ 952 billion) in 2024 to over Rs. 1,37,10,400 crore (US$ 1.6 trillion) by 2030, with organised retail expected to capture more than 35% of the total market.

The sector’s growth is further reinforced by expanding retail infrastructure. India’s seven largest cities alone are expected to add 16.6 million sq. ft. of new shopping mall space by 2026, according to Anarock. Organised retail is projected to reach Rs. 19,70,870 crore (US$

230 billion) by 2030 from Rs. 11,31,108 crore (US$ 132 billion) in 2024, propelled by rising incomes, urbanisation, and evolving consumer preferences, as highlighted in a Deloitte–Retailers Association of India (RAI) report.

India today ranks among the most attractive destinations for retail investment, supported by its demographic advantage, the world’s largest population, a growing middle-income segment of ~158 million households, increasing urbanisation, connected rural consumers, and rising household spending. The government has also introduced progressive policies and reforms to improve the business climate, making it easier for foreign players to establish wholly owned subsidiaries and tap into India’s retail potential.

India's retail sector leasing surged to 3.2 million square feet in Q3 2025, marking a 65% YoY growth 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.

Market Size

India’s direct selling industry was valued at Rs. 22,022 crore (US$ 2.57 billion) in FY24, reflecting the resilience of the country’s consumption story despite global challenges. By FY25, India had become the world’s third-largest e-retail market by shopper base, behind only China and the US. The rapid expansion of new-age logistics is expected to further boost this growth, with an estimated 2.5 billion Direct-to-Consumer (D2C) shipments projected by 2030.

India’s e-commerce market stood at Rs. 10,71,125 crore (US$ 125 billion) in 2024 and is projected to reach Rs. 47,12,950 crore (US$ 550 billion) by 2035, supported by rising internet penetration, digital payments, and growing consumer preference for online shopping. Reliance Industries, India’s largest retailer, has highlighted that the country is poised to emerge as the world’s third-largest retail market by 2030, with government initiatives aimed at boosting disposable incomes and driving consumption.

The e-commerce ecosystem is also witnessing parallel growth in infrastructure. The e-commerce warehousing market was valued at Rs. 72,684 crore (US$ 8.5 billion) in 2024 and is expected to reach Rs. 3,04,416 crore (US$ 35.6 billion) by 2033, growing at a CAGR of 17.28% during 2025–33. India’s broader digital economy is projected to touch

Rs. 68,55,200 crore (US$ 800 billion) by 2030, up from Rs. 34,44,738 crore (US$ 402 billion) in 2023, while employing nearly 14.67 million workers.

Investments/ Developments

The Retail sector in India has seen a lot of investments and developments in the recent past.

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.
India's retail sector leasing surged to 3.2 million square feet in Q3 2025, marking a 65% YoY growth 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 saw continued acceleration with over 130 new store openings in October 2025 across various brands including hypermarkets, supported by significant funding boosts, signaling expansion and consumer demand growth.
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.
In August 2025, Reliance Retail announced plans to invest Rs. 40,000 crore (US$ 4.67 billion) over three years to set up Asia’s largest integrated food parks, leveraging AI, robotics and sustainable technologies to drive its target of Rs. 1,00,000 crore (US$ 11.67 billion) in annual FMCG revenue.
India's luxury retail market is experiencing rapid growth, with leasing activity increasing by 90% YoY in Q1 2025, driven by the expansion of global and domestic brands across major cities. This surge is attributed to evolving consumer demographics, rising incomes, and the country's potential to become a leading luxury market in the Asia-Pacific region.
Retailers are expanding their private label offerings to meet this demand. For instance, Reliance Retail is intensifying its focus on private labels in the consumer durables sector, aiming to challenge established global brands.
A report by EY indicates that 52% of Indian consumers are opting for private label products in 2025, with 70% acknowledging that these brands are increasingly offering better quality products.
AstorMueller AG has entered India’s retail market through a joint venture with Gaurik Group called Nuvora, aiming to launch 10 to 12 exclusive Bugatti stores across the top 20 cities in FY26.
According to the IAMAI-Kantar 'Internet in India Report 2024', out of 332 million online shoppers, 105 million used only cash-on-delivery (COD) as their payment method during online shopping.
Xiaomi aims to locally source over 55% of smartphone components by 2025, up from around 35% in 2023, boosting domestic value addition from 18% in 2023 to 22% by 2025.
On June 9, 2025, Shein and Reliance Retail extended their partnership by preparing to export India-made Shein-branded apparel globally targeting the US and UK within six to twelve months, while expanding their supplier base from 150 to 1,000 local manufacturers.
On July 12, 2025, Prada Group dispatched a supply-chain team to Kolhapur to meet local Kolhapuri chappal artisans and explore a Made in India collaboration.
On July 15, 2025, Lululemon confirmed its India debut via a strategic partnership with Tata Cliq, planning both a physical store and presence on Tata Cliq Luxury and Fashion platforms in late 2026.
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 2024, 27 global brands entered India, nearly double the pre-pandemic average of 12, reflecting the country’s rise as the world’s third-largest retail market, fuelled by a young, tech-savvy consumer base, expanding mall infrastructure and rising disposable incomes.
In FY25, Nykaa completed its largest-ever physical retail expansion by adding 50 stores, bringing its total to 237 across 79 cities.
In February 2025, Tim Hortons India opened its sixth store in Mumbai, located at the First International Financial Centre in Bandra Kurla Complex, increasing its nationwide total to 39 outlets.
IKEA initiated a second-wave expansion in August 2025 by emphasising stronger local sourcing, improved logistics, and a deeper omnichannel approach after having previously invested over Rs. 10,500 crore (US$ 1.23 billion) in India.
On February 24, 2025, H&M India Director, Ms. Helena Kuylenstierna confirmed at the Great India Retail Summit that H&M India now operates 65 stores with the 66th opening soon in Gangtok and has achieved 85% use of recycled or sustainably sourced materials, progressing towards 100% by 2030 target.
In July 2025, the Andhra Pradesh government allotted LuLu Group a 99-year lease over 13.74 acres on Vizag’s Beach Road and 4.15 acres at Vijayawada’s old bus depot to develop mega shopping malls offering approximately 13.5 lakh sq ft and 2.23 lakh sq ft respectively under special tourism policy exemptions.
As of March 2025, Reliance Retail operates 19,340 stores across with a retail area of over 77.4 million sq. ft. in India.
The annual inflation rate based on all India Consumer Price Index (CPI) number is 1.55% for the month of July 2025. In July 2025, rural food inflation stood at -1.74%, while urban food inflation was-1.90%.
India’s retail trading sector attracted Rs. 41,645 crore (US$ 4.86 billion) FDIs between April 2000-June 2025.
India’s consumer and retail sector closed 139 deals worth Rs. 32,562 crore (US$ 3.8 billion) in Q1 CY25 marking a 65% surge in deal volume and a 29% rise in value over the previous quarter, led by major deals such as Temasek’s Rs. 8,569 crore (US$ 1 billion) investment in Haldiram’s and Wilmar International’s Rs. 12,339 crore (US$ 1.4 billion) acquisition of Adani Wilmar’s staples business.
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.
India's Rs. 1,71,860 crore (US$ 20 billion) cosmetics and beauty market are poised to benefit from the India-UK free trade agreement (FTA), which will reduce duties on cosmetics and other products. The FTA will directly benefit retailers like Nykaa, Reliance Tira, and Shoppers Stop, as well as e-commerce platforms like Amazon and Myntra, which sell premium beauty products.
India’s private consumption has nearly doubled to Rs. 1,83,30,900 crore (US$ 2.1 trillion) in 2024 from Rs. 87,29,000 crore (US$ 1 trillion) in 2013, growing at a 7.2% Compound Annual Growth Rate (CAGR), outpacing the US, China, and Germany, according to a Deloitte India and Retailers Association of India report.
India's seven major cities are set to receive 16.6 million square feet (sq. ft.) of prime retail space in new shopping malls by the end of 2026, as per Anarock's data.
In January 2025, Hindustan Unilever acquires 90.5% stake in beauty brand Minimalist at Rs. 2,955 crore (US$ 341.1 million) valuation.
In December 2024, the Competition Commission of India (CCI) has approved the acquisition of a 72.8% stake in Prataap Snacks Ltd by Authum Investment & Infrastructure Ltd and Mahi Madhusudan Kela. This acquisition marks a significant shift in ownership for the snack brand Diamond.
French sports retailer Decathlon is accelerating its investments to ramp up production and enhance its retail presence further in India.
The Indian retail sector in 2024 saw the opening of over 750 new stores and a total of Rs. 12,000 crore (US$ 1.38 billion) rose, as per the data compiled by IndiaRetailing Insights.
Reliance Industries is likely to sell another 8-10% stake in Reliance Retail Ventures Ltd (RRVL) to fund expansion, retire debt and prepare for the initial public offering of the conglomerate's retail business.
Reliance Consumer Products, the FMCG arm of Reliance Retail announced the launch of it made-for-India consumer packaged goods brand 'Independence' in Gujarat.
Retail tech companies supporting the retail sector with services such as digital ledgers, inventory management, payments solutions, and tools for logistics and fulfilment are taking off in India.
With the rising need for consumer goods in different sectors including consumer electronics and home appliances, many companies have invested in the Indian retail space in the past few months.

Growth Drivers for retail in India

Gold loans are driving India’s retail credit growth, rising 35% YoY to Rs. 1,06,00,000 crore (US$ 1.23 trillion) in FY25, boosted by higher gold values and easier credit from public sector banks and NBFCs.
From FY20 to FY25, digital transactions have surged, exceeding 65,000 crore in number and totalling more than Rs. 1,20,00,00,000 crore (US$ 140 trillion).
In FY25, UPI dominated India’s digital payments, handling 185.8 billion transactions and contributing 83.4% of the total transaction volume.
By October 1, 2025, UPI transactions in retail saw a year-on-year volume rise of 31% and a 21% value increase compared to the previous year, reflecting rapid expansion in digital payment acceptance at merchant outlets.
As of March 2025, Indian banks’ unsecured retail loan portfolio, driven by personal loans, credit cards, and digital lending platforms, accounted for 25% of overall retail loans and 8.3% of total bank credit, reflecting growing consumer access to easy credit and rising household consumption.
On February 1, 2025, India’s Budget raised the personal tax exemption limit from Rs. 7,00,000 (US$ 8,168) to Rs. 12,00,000 (US$ 14,000), a move expected to enhance disposable income for an estimated 25–30 million taxpayers, thereby boosting consumption of essentials and aspirational goods.
Favourable Demographics: India’s large and young population, Rising Middle Class, Urbanization, Changing Lifestyle and Consumption Patterns and favourable government initiatives prove to be a growth engine for the retail industry.
Change in consumer mindset: The transition from traditional retail to online platforms in India has spurred a shift in consumer mindset. This change is characterized by a prioritization of convenience, a wider product selection, increased price sensitivity, growing trust in online transactions, reliance on reviews and recommendations, evolving loyalty dynamics, a greater embrace of technology, and heightened expectations for fast delivery. A new CBRE & Invest India survey has revealed a significant shift in India's retail landscape, driven by a growing consumer demand for experience-based entertainment. Over 70% of respondents across various age groups prefer participatory activities such as bowling, amusement parks, rock climbing, escape rooms, and children's play zones over passive options like museums or art exhibitions. Mini-sized beauty products are gaining traction in India, driven by affordability, convenience, and the desire for experimentation, particularly among Gen Z. These small packs, often called "minis," are reshaping the Indian beauty market as more consumers look to experiment with makeup at the "right" price.
Brand consciousness: Brand consciousness in India is a multifaceted phenomenon shaped by economic, cultural, and technological factors. As consumer expectations continue to evolve, brands must remain agile and responsive to changing trends, ensuring that they deliver value, innovation, and authenticity to maintain their competitive edge in the market.

Government Initiatives

The Government of India has taken various initiatives to improve the retail industry in India. Some of them are listed below:

In July 2021, the Andhra Pradesh government announced retail parks policy 2021-26, anticipating targeted retail investment of Rs. 5,000 crore (US$ 674.89 million) in the next five years.
Government may change Foreign Direct Investment (FDI) rules in food processing in a bid to permit E-commerce companies and foreign retailers to sell Made in India consumer products.
Government of India has allowed 100% FDI in online retail of goods and services through the automatic route, thereby providing clarity on the existing businesses of E-commerce companies operating in India.

Road Ahead

Consumer preferences and buying behaviours in India are evolving rapidly, driven by greater access to technology and digital platforms. Shoppers increasingly expect seamless experiences across offline and online channels, prompting retailers to design integrated strategies that combine traditional stores with e-commerce platforms. Companies are also exploring innovative revenue models to enhance customer value and engagement.

E-commerce continues to grow steadily, offering consumers a wide range of products at competitive prices. This digital transformation is reshaping the retail industry, enabling retailers to expand their reach to tier II and tier III cities while reducing reliance on physical real estate. The online retail market in India is projected to reach Rs. 22,27,940 crore (US$ 260 billion) by 2030 from Rs. 6,42,675 crore (US$ 75 billion) in 2024, fuelled by rising internet penetration, digital payments, and an expanding shopper base.

The long-term outlook for India’s retail sector remains highly positive. Growth is expected to be supported by increasing disposable incomes, favourable demographics,

rising urbanization, and the entry of international players, positioning India as one of the most promising retail markets globally.

Note: Conversion rate used in October 2025, Rs. 1 = US$ 0.011

References: Media Reports, Press Releases, Deloitte report, Department of Industrial Policy and Promotion website, News Articles, KPMG, Bain & co, PIB

Retail Industry Report

Nov, 2025

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