The retail market in India has undergone a major transformation and has witnessed tremendous growth in the last 10 years.
Indian retail market is projected to reach approximately $2 tn by 2032 from 690 $ Bn in 2021.
India currently has the 4th Largest retail market in the world.
Indian retail market recovered from panemic lows and grew 10% yoy from 630 $ Bn to reach 690 $ Bn in 2021.
India ranks among the best countries to invest in Retail space. Factors that make India so attractive include the second largest population in the world, a middle-income class of ~158 households, increasing urbanisation, rising household incomes, connected rural consumers and increasing consumer spending.
India ranked No. 2 in Global Retail Development Index (GRDI) in 2021.
The retail sector in India contributed ~800 Bn to India’s GDP in FY20 and employed 8% of its workforce (35+ Mn). It is expected to create 25 Mn new jobs by 2030.
Increasing demand for organised retail space has helped create a capacity of ~120 Mn square feet (MSF) in retail space across major Indian cities. Major Indian cities include Delhi (23.7 MSF) and Mumbai (16.7msf).
FMCG, apparel & footwear, and consumer electronics are the largest retail segments, constituting 65%, 10% and 9% respectively of the retail market.
The E-Commerce market is expected to touch $350 Bn in GMV by 2030.
India’s digital economy is expected to touch $800 Bn by 2030.
Online shoppers in India are expected to reach ~500Mn in 2030 from +150Mn in 2020.
As of 2021, there were 1.2 Million daily e-commerce transactions.
The total value of Digital transactions stood at $ 300 Billion in 2021 and is projected to reach $ 1 Trillion by 2026.
The Indian e-commerce industry is expected to cross the $350 bn in GMV by 2030.
Indian retail market is estimated to reach $2 tn by 2032, driven by socio-demographic and economic factors such as urbanisation, income growth and rise in nuclear families. On the other hand, the Indian e-commerce industry is expected to cross $350 bn mark by 2030, growing at a CAGR of 23%.
In first half of 2021, e-commerce accounted for nearly a third of several electronic categories, almost half of smartphones sold, and about a fifth of all apparel sales in India. Consumer internet and e-commerce companies raised US$38 billion in 2021, an increase from US$8 billion in 2020, driven by large-size investments across fintech, hyperlocal and e-commerce sectors as the Indian start-up ecosystem continues to mature. India will become the 3rd largest online retail market by 2030, with an estimated annual gross merchandise value of $350 bn.
The Indian retail market is largely unorganized. However, over the next 3-5 years, share of modern retail (including e-commerce) will increase to 30-35% with share of traditional retail coming down to 65-70%.