India’s retail sector recorded 8% year-on-year growth in September 2026, according to the Retailers Association of India’s (RAI) Business Survey Round 75. The growth comes ahead of the main festive shopping period, which falls later this year.
Festive Calendar Shapes September Retail Growth
The timing of this year’s festive season is important when comparing September’s retail performance. In 2025, Navratri began on September 22, followed by Dussehra on October 2 and Diwali on October 20. In contrast, Navratri began on October 11 in 2026, Dussehra was celebrated on October 20 and Diwali will fall on November 8.
Therefore, September 2025 already included the start of festive shopping, while September 2026 largely reflected pre-festive consumer activity.
RAI’s business surveys recorded retail growth of 7% in May 2025 and 8% in both June and July. These figures came during the build-up to the main festive period. September 2026’s 8% growth offers a positive indication of consumer demand at a similar stage. However, differences in reporting periods mean the figures should not be treated as direct comparisons.
West India Leads Regional Retail Growth
West India recorded the highest retail sales growth in September at 10%. South India followed with 9%, while North India reported 7% growth.
East India recorded 5% growth. Despite regional differences, all four regions continued to register positive year-on-year retail sales.
QSR, Food & Grocery and Apparel Lead Categories
Among the categories tracked by RAI, Quick Service Restaurants (QSR) posted the strongest growth at 11%.
Food & Grocery and Apparel & Clothing followed at 9% each. Meanwhile, Beauty, Wellness & Personal Care and Consumer Durables & Electronics recorded 7% growth each.
Sports Goods and Jewellery grew by 6%, while Footwear recorded 5% growth.
| Retail Category | Growth in September 2026 |
|---|---|
| QSR | 11% |
| Food & Grocery | 9% |
| Apparel & Clothing | 9% |
| Beauty, Wellness & Personal Care | 7% |
| Consumer Durables & Electronics | 7% |
| Sports Goods | 6% |
| Jewellery | 6% |
| Footwear | 5% |
Retail Growth Moderates from August
September’s 8% growth represents a moderation from 10% growth recorded in August 2026. Several major categories saw their year-on-year growth rates ease.
QSR growth declined from 15% in August to 11% in September. Food & Grocery moved from 12% to 9%, while Apparel & Clothing eased from 10% to 9%.
Consumer Durables & Electronics maintained its 7% growth rate.
However, the later festive calendar needs to be considered when assessing the September numbers. With major celebrations occurring later this year, the full effect of festive demand is likely to become clearer in October and November.
RAI Remains Positive on Festive Demand
Kumar Rajagopalan, Chief Executive Officer, Retailers Association of India (RAI), said:
“Retail sales growth of 8% in September is encouraging, particularly when viewed in the context of this year’s festive calendar. Last year, Navratri began in September, whereas this year the celebrations commenced in October, with Diwali falling in November. September’s performance therefore largely reflects pre-festive consumption, while the corresponding period last year had already seen festive buying begin.
The continued growth across regions and categories provides a positive foundation for the weeks ahead. A supportive policy environment, together with the retail industry’s continued focus on value, product availability and customer experience, will be important in sustaining this momentum. We remain optimistic about the festive season, while recognising that October and November will provide a more complete picture of consumer demand.”
Festive Shopping to Extend into November
As the festive shopping period extends further into November, retailers will closely monitor spending across both discretionary and essential categories.
September’s results offer a positive starting point for the festive season. However, retail performance in October and November will provide a clearer picture of consumer demand and the overall strength of festive spending in 2026.
