India’s smaller cities are expanding nearly twice as fast as metropolitan centres, reshaping the country’s retail landscape as decentralised demand and rapid premiumisation redraw growth maps, according to a report by ClarityX and Mastercard.
The report, titled “Winning in India’s Retail Sector– Harnessing Next-Gen Analytics to Drive Transformative Growth”, said tier 3 to 5 cities are emerging as the next engines of consumption, driven by rising disposable incomes, higher aspirations and a lower starting consumption base. The findings are based on MapmyIndia data and examine demand and supply trends between 2023 and 2025.
Offline consumer spending rose 20 per cent over the three years, while retail outlet expansion outpaced it at 25 per cent, indicating continued physical network growth even as digital adoption deepens.
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