Retail sales in India grew 10% year-on-year in March 2026, according to Round 69 of the Retailers Association of India’s (RAI) Business Survey, bringing FY2026 to a steady close. The sector has maintained consistent growth in the range of 9% to 10% over the past six months.
Regionally, performance remained balanced, with West and North India leading at 11% growth each, followed by South India at 10% and East India at 9%.
Among categories, food and grocery recorded the highest growth at 14%, followed by apparel at 13%, jewellery at 12%, and quick service restaurants (QSRs) at 11%, the latter sustaining strong momentum throughout the year. In contrast, consumer durables saw minimal growth at just 1%, as consumers continued to defer high-value purchases.
Looking ahead, cost pressures are expected to influence retail performance in FY2027. Rising energy costs, logistics expenses, and real estate rentals are impacting margins despite steady topline growth. While physical footfalls have moderated, conversion rates are improving as consumers demonstrate more purposeful buying behaviour. Retailers are responding with localised assortments and sharper value propositions.
Kumar Rajagopalan, Executive Director and CEO, RAI:
“March 2026 closed FY2026 on a stable, moderately strong note. Food, apparel, QSR, and jewellery led the way; consumer durables lagged amid big-ticket caution. Global uncertainty and rising input costs — energy, logistics, real estate — created moderate pricing pressure across categories. The consumer is more purposeful today than two years ago. Retailers who match that shift with the right product at the right value will grow. FY2027 will reward precision over scale.”
