What's Happening?
India's retail sector is undergoing a significant transformation, projected to nearly double in size by 2030, according to a report by V5 Global. The sector is expected to grow from $1.18 trillion in 2025 to nearly $2 trillion by 2030, driven by formalization,
technology adoption, and the growth of organized retail. The retail industry, which currently employs 35 million people, is anticipated to add 25 million new jobs by the end of the decade. The report highlights the increasing importance of workforce capability, with a focus on skill development and the rise of Tier-2 cities as critical consumption and employment hubs.
Why It's Important?
The rapid growth of India's retail sector is crucial for the country's economic development, as it is the second-largest job creator. The expansion of the sector will lead to increased employment opportunities, particularly in Tier-2 cities, which are emerging as significant consumption and employment centers. The rise in women's participation in retail and the demand for digital skills are also noteworthy trends. As the sector evolves, retailers who can adapt to these changes and leverage technology will have a competitive advantage. The growth of e-commerce and the demand for analytics and AI-led personalization are expected to shape the future of retail in India.
What's Next?
The retail sector's transformation will continue, with a focus on skill development and the integration of technology. The demand for mid- and high-skill roles is expected to grow, creating opportunities for workforce development. Retailers will need to adapt to the changing landscape by investing in digital skills and technology-enabled engagement. The sector's growth will also drive the expansion of the gig economy, with retail accounting for a significant portion of flexible employment. As the market approaches $2 trillion, stakeholders will need to address challenges such as gender representation and wage parity to ensure inclusive growth.
