India's Organized Retail Sector Projected to Reach $230 Billion by 2030: Deloitte-RAI Report
India’s organized retail sector is on a steady growth path, expected to reach $230 billion by 2030, according to a report by Deloitte and the Retailers Association of India (RAI). The report, titled A Roadmap for Brands, highlights a 10% compound annual growth rate (CAGR), driven by rising disposable incomes, digital commerce expansion, and evolving consumer preferences.
The report states that India's private consumption has increased from $1 trillion in 2013 to $2.1 trillion in 2024, growing at a 7.2% CAGR. This growth rate surpasses that of the US, China, and Germany. By 2030, India’s GDP is projected to reach $7.3 trillion, with consumption contributing 60% to the economy, reinforcing its position as a global consumption hub.
Factors contributing to this expansion include:
- A shift toward experience-led retail spaces and omnichannel shopping.
- Greater adoption of hyper-personalized services by brands.
- Expanding digital infrastructure and increased credit accessibility.
- Rising discretionary spending among consumers.
Changing Consumer Landscape
India’s consumer spending patterns are evolving, with Gen Z and millennials playing a crucial role. The report indicates that by 2030, the number of individuals earning over $10,000 annually will nearly triple, growing from 60 million in 2024 to 165 million. This reflects the expansion of the middle class and an increase in discretionary spending.
Consumers are prioritizing quality, convenience, and unique shopping experiences over price. Premium brands, sustainable products, and customized services are gaining traction as demand shifts toward personalized retail offerings.
Industry Insights
Anand Ramanathan, Partner and Consumer Industry Leader at Deloitte India, emphasized the impact of digital commerce and credit accessibility in reshaping brand engagement. He noted that by 2030, India’s per capita income is projected to surpass $4,000, opening new opportunities across multiple sectors.
Kumar Rajagopalan, CEO of RAI, highlighted the increasing role of digital adoption and evolving consumer preferences in shaping discretionary spending patterns. He stated that the report provides businesses with a strategic roadmap to navigate these shifts effectively.
The organized retail sector's projected growth signals a transformation in how businesses engage with consumers. As digital infrastructure improves and disposable incomes rise, companies must focus on offering seamless omnichannel experiences and innovative retail solutions to remain competitive in the evolving market.
