Reliance Industries Ltd (RIL), India’s largest retailer, has projected that the India retail market is on track to become the world’s third-largest retail market by 2030. In its annual report for the financial year 2025 (FY25), the company cited strong government policy support, growing disposable incomes, and robust rural demand as key factors underpinning the sector’s expansion.
The India retail market is already among the fastest-growing consumer markets globally. A recent study by the Boston Consulting Group and the Retailers Association of India estimates the sector will reach ₹190 trillion by 2034, growing at a compounded annual growth rate (CAGR) of 9%.
Significant Investments and Store Expansion
RIL reported that it invested ₹33,696 crore in FY25, an increase of 37.5% from ₹24,506 crore in the previous year. The company said these investments were directed towards infrastructure development and expansion across multiple retail formats, including consumer electronics, fashion and lifestyle, grocery, and its own consumer brands.
Gross revenue for the retail segment stood at ₹3,30,943 crore, up 7.9% from FY24. Earnings before interest, tax, depreciation and amortisation (EBITDA) reached ₹25,094 crore, representing an 8.6% year-on-year increase. The company added 2,659 new stores during the year, taking its total store count to 19,340, the largest footprint of any retailer in the country. RIL’s registered customer base also crossed 349 million, reflecting deeper penetration in both urban and rural markets.
Opportunities Accompanied by Challenges
Despite the optimistic outlook, RIL noted several challenges in the retail environment. The company said upward pressure on rentals, caused by a demand-supply imbalance for high-quality retail space, remains a concern. Availability of trained manpower to support large-scale store expansion is also a limiting factor.
Macroeconomic variables, such as inflationary trends and changes in consumer spending patterns, could also affect short-term performance. However, RIL believes these challenges are outweighed by the opportunities presented by rising consumer aspirations, increasing disposable incomes, and a rapidly urbanising population.
Technological advancements, the introduction of innovative products, and enhanced consumer engagement are expected to further strengthen the sector’s long-term growth trajectory.
Broader Role in Economic Development
In its industry overview, RIL described the India retail market as one of the most dynamic and rapidly expanding segments of the economy. The sector contributes significantly to employment generation, supply chain development, and overall GDP.
Government measures, such as tax relief and supportive economic policies, are expected to stimulate consumption and improve household purchasing power. The company said that with a favourable demographic profile, rising rural demand, and ongoing digital transformation, the conditions are in place for sustained retail sector expansion.
If current trends hold, India’s emergence as the world’s third-largest India retail market by 2030 could mark a defining milestone in its economic growth story, with large players like RIL well positioned to benefit from and contribute to that transformation.
Visit Business Viewpoint Magazine to read more.
Source:
