India’s retail sector is poised for substantial expansion over the next decade, with projections indicating it could grow to approximately ₹21.5 lakh crore (US$ 237.6 billion) by 2035. According to a report cited by The Economic Times, the anticipated growth will be fuelled by rising consumer spending and the increasing integration of Artificial Intelligence (AI) across retail operations.
Shifting consumer preferences, higher disposable incomes, and deeper digital penetration are reshaping the retail landscape. The rapid adoption of technology is transforming how businesses manage supply chains, interact with customers, and optimise operations.
AI Transforming Retail Operations
Artificial Intelligence is expected to play a central role in this evolution. From demand forecasting and inventory optimisation to personalised marketing and customer engagement, AI-powered systems are helping retailers improve efficiency and reduce operational costs.
Advanced analytics and automation tools are streamlining logistics, enhancing last-mile delivery networks, and improving stock management. These improvements not only reduce waste but also ensure faster and more reliable service for consumers.
Digital Payments and Omnichannel Expansion
The increasing use of digital payment platforms and the adoption of omnichannel retail strategies are accelerating industry transformation. Organised retailers are leveraging data-driven insights to better understand purchasing patterns and tailor their offerings accordingly.
Urbanisation, the rise of e-commerce platforms, and growing consumer markets in Tier II and Tier III cities are further supporting sectoral growth. Retailers are expanding their presence beyond metropolitan centres, tapping into emerging demand pockets across the country.
Outlook for Long-Term Growth
Industry experts suggest that the combination of technological innovation and sustained consumption growth will position India among the fastest-growing retail markets globally. As AI adoption deepens and digital infrastructure strengthens, the retail ecosystem is expected to become more scalable, efficient, and customer-centric.
The coming decade may therefore witness a transition toward a digitally empowered, innovation-driven retail economy aligned with India’s broader growth ambitions.
Summary
India’s retail market is projected to reach US$ 237.6 billion by 2035, driven by rising consumption and the growing integration of AI across supply chains and customer engagement. Technology-led efficiencies, digital payments, omnichannel strategies, and expansion into smaller cities are expected to support long-term, scalable growth, positioning India as a global retail growth leader.
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