As India recovers from the pandemic, the country's retail industry has resumed its growth trajectory and is likely to witness 10% annual growth to reach approximately $2 trillion by 2032, according to a report.
According to a BCG-RAI report titled "Racing towards the next wave of Retail in India", while certain industry segments like food and grocery, restaurants and Quick service restaurant (QSR), and consumer durables have recovered to pre-Covid levels, others like jewellery and accessory, apparel, and footwear remain on track to a full recovery, reports The Economic Times.
"The Indian economy continues to be driven by consumption and we are observing that consumption growth is back in the positive territory after the two-year Covid pause," BCG Managing Director and Senior Partner Abheek Singhi said.
Noting that India's retail industry will grow to approx $2 trillion in the next 10 years, Singhi said "the next decade will see organised retailers focus on footprint expansion, across all formats - offline and online - to fuel future growth".
As per the report India's consumption, which was growing at approximately 12% pre-pandemic, went into negative territory during the pandemic but has now recovered to surpass pre-pandemic growth levels at 17%.
E-commerce in the country is expected to reach $130 billion by 2026, as compared to $45 billion in 2021, according to the report.
"The rising competition and the need for constantly improving the customer value proposition is driving the rise of ecosystems - and the customers are approached by players across retail and non-retail. We are seeing examples of this trend already in India and is expected to significantly transform the entire landscape in the future," added Rachit Mathur, the managing director and partner, Consumer & Retail Practice, BCG.
The report is an in-depth study of retail players in the country, identifying challenges in the prevailing environment and highlighting emerging trends and models that can potentially shape the future of retail.