As the country recovers from the pandemic, the retail sector has resumed its growth trajectory and is projected to grow 10% annually and reach about $2 trillion by 2032, according to a report.
According to a BCG-RAI report titled “Running Towards the Next Wave of Retail in India”, some segments of the industry, such as supermarkets and groceries, restaurants and quick-service restaurants (QSRs), and consumer discretionary, have recovered to previous levels. to COVID, while others include jewelry and accessories, clothing and shoes remain on the road to full recovery.
“India’s economy remains consumer-focused and we are seeing consumption growth turn positive again after the two-year COVID hiatus,” said Abheek Singhi, managing director and senior partner at BCG.
Noting that India’s retail sector will grow to around US$2 trillion in the next 10 years, Singhi said, “Organized retailers will focus on expanding their presence across all formats, offline and online, during the next decade, to fuel future growth.”
According to the report, Indian consumption, which had grown by around 12% before the pandemic, turned negative during the pandemic but has since recovered and surpassed the pre-pandemic growth level of 17%.
According to the report, e-commerce in the country is expected to reach $130 billion by 2026, up from $45 billion in 2021.
“Increased competition and the need to constantly improve the value proposition for customers is driving the emergence of ecosystems and customers that are targeted by retailers and non-retailers alike. We are already seeing examples of this trend in India and this is expected to significantly change the entire landscape in the future,” added Rachit Mathur, Managing Director and Partner, Consumer & Retail Practice, BCG.
The report is an in-depth study of the nation’s retail players, identifying challenges in the current environment and highlighting emerging trends and patterns that may shape the future of retail.