India’s Retail Boom: Key Statistics

India’s retail sector is one of the fastest-growing industries, contributing over 10% to the country’s gross domestic product (GDP) and employing around 8% of the workforce. The entry of multinational corporations, coupled with a rising middle class, has fueled a surge in retail developments. Nearly 60 new shopping malls, spanning 23.25 million sq. ft, are expected to become operational between 2023 and 2025. According to Kearney Research, India’s retail industry is projected to grow at 9% annually from 2019 to 2030, reaching $1.8 trillion by 2030.

Experience-Driven Stores: The New Retail Trend

Brands are increasingly prioritizing experience-driven stores, incorporating engaging sensory elements such as interactive displays, live demonstrations, and themed store designs to enhance customer engagement. Advanced technologies, including AI-powered recommendations, AR/VR try-ons, and smart displays, are further revolutionizing the shopping experience by seamlessly integrating digital and physical retail.

Industry Leaders Weigh In

Pankaj Jain, Chairman and CMD, SPJ Group, highlights the growing trend of premium retail spaces in key urban centers: “India’s retail sector is witnessing unprecedented growth, with regions like Delhi-NCR emerging as prime hubs for premium and experiential shopping. The demand for mixed-use retail spaces that blend shopping, dining, and entertainment is on the rise. At SPJ Group, we see this as an opportunity to create dynamic retail ecosystems that attract top-tier brands and offer consumers a holistic experience.”

Similarly, Harsh Gupta, CEO, Sundream Group, emphasizes the future of retail: “Retail spaces are evolving into seamless blends of shopping and leisure. Experience-driven stores are the future, and premium brands seek prime locations with high footfall and tech-enabled environments. At Anthurium Noida, we are redefining retail leasing by offering AI-ready infrastructure and a thriving commercial ecosystem.”

Ajendra Singh, Vice-President (Sales and Marketing), Spectrum@Metro, sheds light on how retail is now about storytelling and brand immersion: “Today’s retail is no longer just about products; it’s about storytelling and experiential engagement. Premium brands are elevating the shopping experience with interactive store formats. At Spectrum@Metro, we are curating next-generation retail destinations to create stronger brand connections and sustained consumer interest.”

The Future of Retail Spaces

The rise of premium retail spaces underscores a broader shift toward high-street retail and luxury malls, where technology and immersive experiences redefine consumer interactions. AI, AR/VR, and omnichannel strategies are becoming integral to modern retail, enabling brands to engage with customers beyond traditional sales models. Moving forward, the industry is set to adapt by embracing sustainability, digital innovation, and exclusivity, ensuring that premium retail spaces remain at the forefront of India’s shopping experience.

With the continued expansion of experience-driven retail, India’s shopping landscape is poised for a new era, where physical stores serve as more than just transaction points—they become hubs of engagement, brand storytelling, and customer loyalty.

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The report estimates that in 2024, the e-commerce market stood at USD 125 billion, with expectations to hit USD 345 billion by 2030. This surge, driven by factors such as increasing internet penetration, smartphone adoption, digital payment infrastructure, and government initiatives like ‘Digital India,’ is fostering rapid transformation across the industry. The expansion of logistics and supply chain networks has further boosted the sector’s prospects.

E-Commerce Penetration in Smaller Cities

Beyond metropolitan areas, e-commerce firms are tapping into the growing consumer demand from smaller towns. The share of online shoppers from Tier 2 and 3 cities rose to 56% in FY2024, compared to 46% in FY2020, and is expected to further climb to 64% by FY2030.

“Besides the metros, e-commerce players are also tapping the growing demand from smaller towns and cities. Resultantly, the share of online shoppers from Tier 2 and 3 cities has increased to 56% in FY2024 from 46% in FY2020, and is expected to reach 64% by FY2030,” said Anuj Kejriwal, CEO & MD – ANAROCK Retail.

Meanwhile, India’s overall retail industry is projected to hit USD 2,500 billion by 2035, marking a threefold rise compared to 2019. This expansion is fueled by rising disposable incomes, increasing urbanization, and a burgeoning middle class. Today, the industry is characterized by a blend of sprawling malls, thriving e-commerce, and traditional retail markets.

Mall Vacancy Drops Amidst Rising Demand

The study also highlights significant trends in India’s shopping mall landscape. In 2024, new mall supply across the top seven cities stood at just 1 million sq. ft., while absorption was recorded at 6 million sq. ft. The post-pandemic resurgence in leasing, driven by experiential retail, has led to a significant drop in mall vacancy rates—from 15.4% in 2019 to just 8.1% in 2024.

“New supply is lagging far behind demand. Current supply and demand trends for mall spaces indicate a post-pandemic rebound in leasing, now largely driven by experiential retail,” noted Kejriwal. “Apparel and the F&B sectors consistently contribute nearly 45% of demand, remaining the top footfall drivers.”

With major domestic and international retailers expanding their presence in smaller cities, the supply of malls in Tier 2 and 3 locations is expected to grow substantially. The report projects that these markets will account for over 26 million sq. ft. of mall spaces by 2030, reflecting the growing appetite for organized retail in India’s emerging urban centers.

As India’s retail and e-commerce sectors continue to evolve, the interplay between online platforms and physical retail is expected to shape a dynamic and robust industry landscape in the coming decade.

Also Read: Emerging Tier II-III Cities Drive India’s Warehousing Growth with 100 Million Sq. Ft. Contribution

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