India’s retail market to more than double to Rs 210–215 trillion by 2035: Report

Mumbai, Feb 16 : India’s retail market is set for massive expansion over the next decade, with its size expected to more than double to Rs 210–215 trillion by 2035 from around Rs 90–95 trillion in 2025, according to a new joint report released on Monday.

The report, unveiled by Boston Consulting Group (BCG) and the Retailers Association of India (RAI) at the Retail Leadership Summit 2026 here underline the strong consumption momentum in the country and highlight how technology, especially artificial intelligence (AI), will play a defining role in shaping the next phase of retail growth.

It examines the structural shifts reshaping Indian retail, evolving consumer behaviour, and the strategic choices retailers must make to remain competitive.

India continues to be one of the fastest-growing major economies in the world, with GDP growth of 8 per cent in 2025.

Strong private consumption, particularly in discretionary and services spending, is driving this momentum.

The report said that India is on track to become the world’s third-largest economy by 2030, creating a significant opportunity for retailers over the next decade.

According to the report, AI is not just improving front-end experiences but also reshaping core retail functions such as merchandising, supply chain, marketing and customer service.

A full-scale, function-led AI transformation can unlock performance gains of 40 per cent to 60 per cent, compared with just 10 per cent to 15 per cent improvements from isolated use cases.

However, the study emphasised that nearly 70 per cent of the value generated from AI comes from internal capabilities, process redesign and effective change management rather than technology alone.

Abheek Singhi, Managing Director and Senior Partner at BCG, said India’s retail sector is poised to expand into a nearly Rs 200 trillion opportunity over the next decade.

Bharat Mimani, Managing Director and Partner at BCG, said retail is entering a decisive phase where AI is becoming a core driver of competitive advantage rather than a side experiment.

Kumar Rajagopalan, CEO of RAI, said the next decade’s Rs 200 trillion opportunity will not be captured by sales growth alone.

He stressed that retailers must embed AI across the shopper journey, rebuild talent and operating models, and treat transformation as a continuous discipline rather than a one-time project.