India's Retail Market to Hit ₹21.5 Lakh Crore by 2035, Fueled by AI and Consumption Surge

India's retail market is projected to more than double, reaching ₹210-215 trillion (₹21.5 lakh crore) by 2035, up from ₹90-95 trillion in 2025. This significant growth is attributed to a resilient economy and increasing digital adoption, including AI, according to a joint report by Boston Consulting Group (BCG) and the Retailers Association of India (RAI). The surge indicates a robust future for Indian retail.

India's retail market is on a rapid growth trajectory, anticipated to more than double its current size by 2035. A joint report by Boston Consulting Group (BCG) and the Retailers Association of India (RAI) projects the market will reach an impressive ₹210-215 trillion (equivalent to ₹21.5 lakh crore) by 2035, a substantial increase from its estimated ₹90-95 trillion valuation in 2025. This significant expansion is primarily fueled by two key factors: a resilient domestic economy that continues to bolster consumer confidence and purchasing power, and a sharp surge in digital adoption across various consumer segments. The influence of artificial intelligence (AI), as highlighted in the report's title, is expected to be a crucial catalyst, driving efficiencies, enhancing customer experiences, and fostering innovative retail models. The report underscores a transformative period for Indian retail, positioning it for robust future growth driven by technological integration and evolving consumer behaviors. This growth reflects India's burgeoning consumer base, rising disposable incomes, and the widespread embrace of digital platforms for commerce, setting the stage for a dynamic and modernized retail landscape in the coming decade.