India's retail business is expected to surpass USD 2 trillion by 2032: Report

As India recovers from the pandemic, the retail industry has resumed its growth trajectory and is expected to increase at a 10 percent annual rate to reach USD 2 trillion by 2032, a report said.

While certain industry segments such as food and grocery, restaurants and quick-service restaurants (QSR), and consumer durables have recovered to pre-COVID levels, others such as jewellery and accessory, apparel, and footwear are still on track to fully recover, according to a BCG-RAI report titled "Racing towards the next wave of Retail in India."

"The Indian economy continues to be driven by consumption, and we are seeing robust consumption growth after a two-year COVID break," said BCG Managing Director and Senior Partner Abheek Singhi.  "The next decade will see organised retailers focus on footprint development, across all forms - offline and online - to power future growth," Singhi said, noting that India's retail industry will rise to almost USD 2 trillion in the next ten years.

According to report, India's consumption, which had been expanding at around 12 percent prior to the pandemic, fell into negative territory during the pandemic but has since rebounded to 17 percent, surpassing pre-pandemic levels.

According to the survey, e-commerce in the country is predicted to reach USD 130 billion by 2026, up from USD 45 billion in 2021. "The emergence of ecosystems is being driven by increased competition and the need to constantly improve the customer value proposition – and customers are being addressed by companies from both the retail and non-retail sectors. We're already seeing evidence of this trend in India, and it's projected to have a substantial impact in the future," said Rachit Mathur, Managing Director and Partner, BCG's Consumer & Retail Practice.

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