India’s retail sector recorded a 7% year-on-year growth in April 2026, according to Round 70 of the Retailers Association of India (RAI) monthly Business Survey, reflecting stable consumer demand across key regions and categories.
The data indicates a steady but cautious consumption environment, with retailers navigating rising operational costs and selective discretionary spending. While essentials continue to drive volume, non-essential categories are showing measured growth.
Regional performance shows steady expansion
Regionally, West India led with 9% growth, followed by South India at 8%. Both North India and the overall pan-India average stood at 7%, while East India recorded 5% growth, indicating comparatively slower momentum.
Apparel and footwear maintain stable momentum
Among categories, consumer durables and electronics led growth at 11%, followed by food and grocery at 9%. The apparel segment grew 8% year-on-year, alongside quick-service restaurants (QSRs), while footwear recorded 7% growth.
The apparel and footwear categories continue to reflect steady demand, supported by value-driven purchasing and seasonal retail cycles, even as consumers remain selective in discretionary spending.
Retailers focus on efficiency and value
The report highlights that retailers are adapting to ongoing cost pressures by improving inventory planning, optimising operations, and focusing on value-driven offerings to protect margins.
While demand remains intact, businesses are exercising caution in forecasting and stock management amid an uncertain global cost environment.
Industry outlook remains stable
Kumar Rajagopalan, Executive Director and CEO of RAI, noted that retail growth remains “decent but not exciting,” emphasising that while cost pressures persist, consumer intent to spend remains visible.
Overall, the April 2026 data points to a stable retail environment in India, with steady momentum in key fashion-related categories such as apparel and footwear, even as the industry continues to navigate margin pressures and evolving consumption patterns.
