India’s retail market to grow to $1.3 trillion by 2024: Forrester Research

As per data from Forrester Research, India’s retail market is expected to grow to $1.3 trillion by 2024. The market was worth an estimated $883 billion last year.

Most of India's grocery retail happens at kiranas - small- and mid-sized mom-and-pop outlets which account for 75-78 per cent of the consumer goods market, Ambit Capital estimates.

Store owners typically have a strong and regular customer base in their neighborhood, with home delivery and taking orders on phone a common phenomenon.

Hundreds of household items are crammed inside wall-to-wall glass or wooden shelves, or in the open, at such stores. Many outlets are so small and cramped that customers don't set foot inside - products are handed over by store staff who stand behind a counter.

Many of these shops also offer staples - such as pulses, rice and flour - in loose or unbranded form. They typically operate from early morning till late evening.

Supermarkets are a growing trend in India, with companies like Reliance Industries, led by India's richest man MukeshAmbani, Future Retail, led by Kishore Biyani, and Avenue Supermarts' DMart all competing for customers.This segment accounts for about 12-15% of consumer goods sales, according to Ambit.

Shoppers in India are increasingly turning to e-commerce to shop for everything from electronics to groceries, boosted by online discounts and the development of rapid delivery services across the country. Boston Consulting Group says e-commerce currently accounts for about 5-6 per cent of Indian retail. It is set to expand by an annual 30% to $200 billion by 2026, Invest India estimates.