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Jeet B Bhayani (SEBI RA)

21st Aug 2025 · SEBI-Registered Analyst

India's retail industry is poised to almost double to Rs. 1,68,00,650 crore (US$ 1.93 trillion) by 2030, increasing at a 10% Compound annual growth rate (CAGR), as per a report by Deloitte-FICCI. Estimated at Rs. 92,27,300 crore (US$ 1.06 trillion) in 2024, the industry is driven by increasing purchasing power, and the direct spending ability of Gen Z is Rs. 21,76,250 crore (US$ 250 billion) and strong domestic consumption that provides protection against global fluctuations. The report named Spotting India’s PRIME Innovation Moment emphasized the swift increase in digital adoption, premiumisation, e-commerce, and quick commerce as major growth catalysts. As Free Trade Agreements (FTAs) evolve and tariffs shift to enhance competitiveness, Indian goods are set to seize international markets through cost benefits. Deloitte observed that India's fast-moving consumer goods (FMCG) and retail sectors are entering a transformative decade, characterized by innovation driven by purpose, sustainability, and changes in consumer behavior in both metropolitan and tier II and III cities. The report highlighted the transformative impact of technology and consumer preferences on retail expansion. Online marketplaces currently impact 73% of buying choices, with peer suggestions (51%) and YouTube reviews (40%) becoming significant alternatives to conventional influencer marketing. India's direct-to-consumer (D2C) sector, which exceeded Rs. 6,96,400 crore (US$ 80 billion) in 2024, is anticipated to surpass Rs. 8,70,500 crore (US$ 100 billion) by the year 2025. Quick commerce, expanding at a CAGR of 70-80%, has positioned India as the world's first sizable market, functioning in 80 cities.

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