India’s retail sector is poised for a transformative leap, with its market size projected to nearly double to USD 1.93 trillion by 2030, driven by strong domestic consumption, rising digital adoption, and the rapid growth of e-commerce, according to a Deloitte-FICCI report.

As per the report titled ‘Spotting India’s PRIME Innovation Moment’, India’s retail sector was valued at USD 1.06 trillion in 2024, and the rising purchasing power, including Gen Z’s direct spending capacity of USD 250 billion, is not only sustaining domestic demand but also fuelling brand confidence to scale internationally.

Evolving Free Trade Agreements (FTAs) and tariff realignments are further enhancing India’s export competitiveness, allowing ‘Made in India’ products to reach new markets with reduced barriers and cost advantages, Deloitte said in a statement.

India’s FMCG and retail sectors are entering a transformative decade, amplified by a digital-first, premium-yet-inclusive consumption wave, the rapid expansion of quick commerce and the explosive growth of direct-to-consumer (D2C) brands, it noted.

“India’s consumer ecosystem is entering a defining decade, fuelled by a young, digitally fluent population, an expanding middle class and the rising economic influence of Tier II and III cities, which now account for over 60 per cent of e-commerce transactions,” Deloitte South Asia, Partner & Consumer Industry Leader, Anand Ramanathan said.

“With decisive action and strategic foresight, India can double its retail market to nearly USD 1.9 trillion by 2030 while setting global benchmarks for resilience, innovation and sustainability in the consumer sector,” he said.

According to the report, online marketplaces now influence 73 per cent of purchase decisions, with YouTube reviews (40 per cent) and peer recommendations (51 per cent) emerging as trusted alternatives to traditional influencer marketing. India’s D2C market crossed USD 80 billion in 2024 and is on track to exceed USD 100 billion in 2025, redefining how brands scale and connect with consumers, it added.

The report also pointed out that ‘Made in India’ has earned consumer trust, with the preference for locally-made products strengthening, as 68 per cent of consumers favoured Indian brands in food and beverages, 55 per cent in home decor and 53 per cent in personal care.