India’s retail sector sustained its growth momentum in August 2026, recording 10% year-on-year growth across the country, according to Round 74 of the Retailers Association of India (RAI) Business Survey. The performance follows the recovery seen in July and reflects stable consumer demand across regions and retail categories as businesses prepare for the upcoming festive season.
At the regional level, West India recorded the strongest growth at 11%, ahead of the national average. South India posted 10% growth, in line with the Pan-India figure, while North and East India recorded 9% and 8% growth respectively.
QSR and Food & Grocery Lead Category Growth
Essential and frequently purchased categories continued to support retail expansion during August. Quick Service Restaurants (QSR) recorded the highest category growth at 15%, followed by Food & Grocery at 12%.
Lifestyle categories also maintained positive momentum. Apparel grew 10%, while Footwear registered 8% growth. Consumer Durables & Electronics recorded 7% growth, indicating a stabilisation following the stronger performance seen earlier in April.
Retail Growth Gains Momentum
The August figures indicate a gradual improvement in retail performance following a period of moderation earlier in the year. Growth stood at 7% in April before declining to 5% in May. It subsequently recovered to 6% in June, accelerated to 8% in July and reached 10% in August.
The regional performance in August reflected this broader recovery, with West India at 11%, Pan-India and South India at 10%, North India at 9% and East India at 8%.
Commenting on the findings of Business Survey Round 74, Kumar Rajagopalan, Executive Director and CEO, Retailers Association of India (RAI), said:
“While momentum softened following April, we have seen a clear and encouraging rebound since July. August’s strong performance serves as a promising prelude to the upcoming festive season, and our focus now turns to precise execution and inventory planning to capture seasonal demand. While India’s internal consumption story remains resilient, we maintain a measured and cautious approach in light of broader global macroeconomic conditions.”
With consumer demand showing renewed momentum, retailers are now entering the festive period with greater focus on inventory planning, execution and demand readiness, while continuing to monitor wider global economic conditions.
