India Emerges as a Global Retail Growth Engine

By Dr. Deepak Kumar Sahu, Editor-in-chief-VARINDIA and Group Publications 

Before looking ahead, it is worth revisiting how 2025 unfolded. At a time when many global markets struggled with inflationary pressures, slowing demand, and geopolitical uncertainty, India quietly established itself as one of the strongest growth markets for global retailers. Premium fashion and beauty brands, in particular, continued to perform well, reinforcing India’s position as a rare bright spot in an otherwise challenging retail landscape.

Across categories—from lipsticks and skincare to biscuits, footwear, and apparel—international brands increased their focus on Indian consumers. The shift went beyond higher discretionary spending. Aspirational consumption in India increasingly became a reflection of confidence, identity, and lifestyle choices rather than impulse-driven indulgence. Consumers showed a willingness to pay for quality, global appeal, and personal expression, even as other markets softened.

Several structural factors supported this momentum. Rapid urbanisation, a young and digitally connected population, rising disposable incomes, and mobile-first discovery reshaped buying behaviour. E-commerce and quick commerce accelerated access and convenience, while social media amplified influence and aspiration. At the same time, physical retail evolved through experiential formats and premium stores, signalling a move away from purely value-led consumption toward premiumisation.

Consumer trends in 2025 further illustrated this evolution. Pickleball emerged as a popular social fitness activity, protein-centric diets reflected growing health awareness, and microdramas—short-form digital content—thrived in a time-constrained attention economy. These trends pointed to consumers seeking efficiency, wellness, and community.

Looking ahead to 2026, industry observers expect this momentum to continue. Frisbee and other casual outdoor sports may gain traction, concert culture is likely to expand as live experiences regain importance, and “fibremaxing”—adding fibre to everyday meals—could define the next phase of health-conscious consumption.

Together, these shifts signal a clear reality: India is no longer merely following global consumption trends—it is actively shaping them.