India's retail sector is poised for accelerated growth in 2026, maintaining its status as the world's third-largest market. Key drivers include a shift in demand towards Tier II and III cities, rapid digital integration, and new mall developments. Experts predict double-digit growth, fueled by strong domestic demand and policy support. However, challenges like rising rentals, intense competition, and talent shortages persist. Premiumisation and sustainability are also emerging as crucial factors for brands.