Retail sales in India recorded a 9% year-on-year growth in February 2026, signalling a normalisation in consumption after a strong festive-driven performance in the previous months, according to the latest Retail Business Survey by the Retailers Association of India.
The data highlights that consumption trends remain resilient, even as seasonal demand from the festive and wedding period tapers off. Growth was broad-based across regions, with West and East India leading at 10% each, followed by North at 9% and South at 8%.
At the category level, apparel and clothing were the top performers, with 12% growth, followed by food and grocery at 11%. In contrast, discretionary categories such as consumer durables recorded comparatively slower growth at 7%, indicating cautious spending in non-essential segments.
The findings point to steady underlying demand supported by urban consumption and increasing contributions from non-metro markets. However, retailers are beginning to face rising input cost pressures, particularly linked to global energy market developments, which could impact margins and pricing strategies.
Commenting on the survey, Kumar Rajagopalan, Chief Executive Officer of RAI, said that post the festive surge, retail growth is stabilising at healthy levels, with strong performance across regions and key categories such as apparel and food and grocery.
He also highlighted that rising input costs, driven by global energy trends, are beginning to weigh on margins, even as demand remains steady. Additionally, evolving geopolitical conditions in the Gulf region could further influence fuel prices and supply chains, adding complexity to the operating environment.
Despite these challenges, the immediate impact on consumer demand has remained limited so far. Industry stakeholders note that while inflationary pressures and logistics costs may rise, consumption continues to hold steady.
Looking ahead, retail growth is expected to be driven by strong demand fundamentals, including expansion in non-metro markets, improved supply chain efficiencies, and the continued evolution of retail formats across the country.
