India's consumption, which was growing at approximately 12 percent pre-pandemic, went into negative territory during the pandemic but has now recovered to surpass pre-pandemic growth levels at 17 percent. Going ahead, e-commerce in the country is expected to reach USD 130 billion by 2026, as compared to USD 45 billion in 2021.
Now, as the country recovers from the pandemic, the retail industry has resumed its growth trajectory and is likely to witness 10 percent annual growth to reach approximately $ 2 trillion by 2032, according to a report by BCG-RAI titled “Racing towards the next wave of Retail in India”.
Abheek Singhi, Managing Director and Senior Partner, BCG said, “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.”
Noting that India's retail industry will grow to approx $ 2 trillion in the next 10 years, Singhi stated, “The next decade will see organised retailers focus on footprint expansion, across all formats - offline and online - to fuel future growth.”
E-commerce in the country is expected to reach USD 130 billion by 2026, as compared to USD 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, Managing Director and Partner, Consumer & Retail Practice, BCG.