Written by Manu Bhazin, Country Head of India 

India’s retail industry is undergoing a major transformation, fuelled by rising disposable incomes, rapid urbanisation, a young demographic profile and growing appetite for premium consumer experiences.

According to BCG–RAI, the retail sector valued at ₹82 lakh crore in 2024 is projected to surpass ₹190 lakh crore by 2034, driven largely by the expanding middle-income segment and strong discretionary spending in fashion, F&B, beauty and entertainment.

On the real estate front, India has added 18.6 million sq. ft. of mall supply in the last five years, bringing Grade A retail stock to 88.7 million sq. ft., with Mumbai, Delhi-NCR and Bengaluru contributing 63% of this inventory.

Retail leasing has also remained remarkably resilient, with over 22 million sq. ft. absorbed since 2023, supported by international brand entries, growing retail REIT activity and strong institutional interest. 

At the same time, India’s retail real estate is evolving toward experience-led formats, with new malls becoming larger, averaging over 1 million sq. Ft. and focused on entertainment zones, destination dining, wellness and social experiences.

This marks a clear shift in consumer behaviour as malls transition from shopping venues to multi-purpose lifestyle destinations. The combined effect of rising demand, sophisticated brands, and modern mall infrastructure signals the emergence of a more competitive and globally aligned retail ecosystem.

As India enters its next phase of economic rise, its retail landscape is becoming bigger, bolder and more experiential, reflecting the confidence of a young and rapidly growing consumer-driven nation.