The Indian retail market is projected to reach approximately US$ 237.6 billion (Rs. 21.5 lakh crore) by 2035, according to a report cited from the Economic Times. This growth is expected to be driven by rising consumer spending and the increasing integration of Artificial Intelligence throughout the retail supply chain.
Shifts in consumer behaviour, higher income levels, and widespread digital adoption are transforming the retail landscape. AI-enabled solutions are expected to enhance inventory management, streamline operations, and deliver personalised shopping experiences, allowing retailers to engage more effectively with customers while improving operational efficiency.
The report highlights that AI will play a pivotal role in forecasting demand, reducing operational costs, and boosting productivity across the retail ecosystem. Analytics and automation are anticipated to optimise logistics and last-mile delivery, complementing urbanisation trends, the expansion of e-commerce platforms, and growing penetration into Tier II and Tier III cities.
Additionally, the rise of digital payments, omnichannel strategies, and data-driven decision-making in organised retail will continue to drive transformation. Industry experts believe that the combination of technological innovation and evolving consumer trends will position India as one of the world’s fastest-growing retail markets.
As the country shifts toward a digitally driven, innovation-focused retail ecosystem, AI and technology adoption are expected to underpin scalable and sustainable growth. Retailers leveraging automation, data analytics, and enhanced logistics capabilities will be better equipped to meet consumer demand, improve efficiency, and expand their market presence across both urban and emerging regional centres.
These developments signal a robust and dynamic future for India’s retail sector, with AI acting as a central enabler of operational excellence and personalised consumer experiences, ultimately shaping India’s position as a global leader in modern retail.
