India will become the fifth largest consumer market in the world by 2030, a joint report has said. According to a FICCI-Deloitte report on the retail, fast moving consumer goods (FMCG) and e-commerce sectors in the country, the consumer retail industry is expected to reach a size of Rs 85 trillion by 2021. “Consumer retail forms an integral part of the industry with a current estimated size of more than Rs 45 trillion,” said the report “Konnected to Consumers”.

“It is further expected to witness a CAGR of over 10 per cent in the period 2016-21 to reach a size of Rs 85 trillion by 2021,” it added. The report said the consumer industry is one of the most dynamic and amongst the fastest growing industries in India.

Although optimism is well founded and makes India attractive to FMCG firms and retailers, challenges remain like poor basic infrastructure, a complex multi-layer regulatory and taxation regime, the report added.