According to a Deloitte report, India's online retail sector is expected to reach $325 billion in market size by 2030

According to a Deloitte India analysis issued on Tuesday, the country's online retail market size may reach USD 325 billion (approximately Rs. 26,65,081 crore) by 2030, up from USD 70 billion (about Rs. 5,74,017 crore) in 2022, owing to strong development in e-commerce in tier-2 and tier-3 cities.

It also stated that online retail penetration is expected to rise at an unprecedented rate, outpacing offline retail by 2.5 times over the next decade.

Deloitte Touche Tohmatsu India LLP's (Deloitte India's) 'Future of Retail' report "foresees the online retail sector, which stood at USD 70 billion (roughly Rs. 5,74,017 crore) in 2022, to surge to USD 325 billion (roughly Rs. 26,65,081 crore) by 2030" as India ascends to become the world's third-largest consumer market.

According to the survey, the rapid expansion of e-commerce in tier-2 and tier-3 cities has exceeded tier-1 markets in terms of total orders.

According to the report, these cities will account for more than 60% of all orders in 2022, with tier-3 cities having a spectacular 65 percent increase in order volume and tier-2 cities experiencing a significant 50% increase.

"The increase in online retail can be attributed to a variety of factors." The ease of ordering and returning items, backed up by a sophisticated logistical infrastructure covering over 19,000 pin codes, has been critical," it noted.

According to the survey, India has a digitally sophisticated customer base of 220 million online buyers, which is fueling the rise of e-commerce.

Furthermore, private equity and venture capital companies have made considerable investments in the industry, reaching USD 23 billion over the last five years, according to the research.

According to the report, online sales are on track to outpace organised retail, with an increasing emphasis on omnichannel retail strategies, in which businesses seamlessly connect their offline and online platforms to give customers with the best of both worlds.

"I am optimistic about India's retail sector's exponential growth potential, which is being driven by rising incomes, an expanding middle-class, and rapid digitalization."

"By harnessing the power of technology, sustainability, and forward-thinking strategies, retailers can create an ecosystem that not only meets evolving consumer demands but also sets new benchmarks for value, engagement, and unforgettable shopping experiences," said Anand Ramanathan, Partner and Consumer Industry Leader - Consulting at Deloitte India.

Furthermore, it suggested that new commerce channels fueled by factors such as increased internet use in tier 2 cities, ease of starting online businesses, government support, convenience, personalization, easy discovery and payment, and trust in influencers are poised to reshape the country's retail landscape.

"Augmented reality (AR), virtual reality (VR), the Metaverse, and experiential retail are changing the way people interact with one another." "By creating captivating and interactive shopping environments, retailers can improve customer engagement, satisfaction, and sales," according to the survey.

Integrating kiranas into the greater retail ecosystem enhances their product selection and strengthens their commercial presence, according to the company.