India's Retail Revolution: Capturing the Rs 200 Trillion Prize by 2035

India's retail market is projected to more than double by 2035, as the country emerges as a major global economic force. A report by BCG and RAI underscores the importance of AI and technology in driving this transformation, encouraging retailers to adopt adaptable strategies to seize this opportunity.

India's retail market is set for a significant transformation, with expectations to more than double by 2035, according to a recent report. The country is poised to become the world's third-largest economy, outpacing major global counterparts as it accelerates towards Rs 210-215 lakh crore.

Success in this burgeoning market will favor retailers who strategically combine a clear focus with disciplined execution, driven by AI-led reforms. The report by Boston Consulting Group and the Retailers Association of India highlights that retailers need to adapt by reevaluating traditional assumptions, embracing AI, and ensuring innovative consumer engagement.

Agentic commerce is becoming a reality, influencing consumer preferences and purchase decisions. As digital adoption grows in India, AI-driven shopping journeys are anticipated to rapidly expand, especially among Gen Z. Embracing an end-to-end AI approach could unlock performance gains between 40-60%, firmly positioning retailers to win future value propositions.