India’s Retail Boom: $550 Billion E-commerce Market by 2035

India’s retail industry will see tremendous growth, with e-commerce expected to hit $550 billion by 2035. The rise of online shoppers in Tier 2 and 3 cities, now making up 56% of the market, drives this growth. The total retail market could reach $2,500 billion by 2035, three times its size in 2019.

Mall spaces are also in high demand. However, new mall supply isn’t keeping up. The vacancy rate for malls fell from 15.4% in 2019 to 8.1% in 2024 due to strong demand from apparel and food & beverage sectors and the popularity of experiential retail. This decline highlights the growing need for more retail spaces to cater to the increasing number of consumers.

As the retail landscape evolves, both physical and online platforms are expected to thrive, contributing to the industry’s growth. E-commerce and traditional stores will play key roles in shaping India’s retail sector, ensuring its robust and dynamic future.