The internet revolution, as we call it, is sweeping through tier 2 and 3 cities. India currently has over 700 million internet users of which 350 million are digital payment app users and 220 million are shoppers. These numbers are expected to grow exponentially as India's household income continues to rise.

According to a Google and Bain Report, India will see a whopping 480 million rural internet users by 2025 and this rural user base is likely to act as a force multiplier. According to Kearney's India Retail Index, smaller cities beyond the top 100 will drive the next wave of development.

So what's driving this growth? With affordable and easily accessible internet, awareness in tier-2 and beyond cities is only rising. People also having higher aspirations driven by easier access to purchase and pay via digital options. Other key drivers are stronger logistics infrastructure which allows deliveries in some of the remotest areas in the country, deeper penetration of brands and outlets and reverse migration post-COVID.

India is on course to witness a 4 times growth in consumer spend by 2030, but where does this growth opportunity really lie? According to Kearney's report, consumption share of metros is already saturated and is expected to remain stagnant till 2030. Its pretty much the same picture for rural consumption as well, whose share is estimated to dip nearly 6 percent. But tier 1 to 4 cities, that's where the window widens. Collectively, it is estimated to account for 43 percent of India’s consumption.

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