India Retail Sales Grow 10% YoY in March 2026: RAI Survey

Retail sales across India recorded a 10% year-on-year increase in March 2026, according to Round 69 of the Retailers Association of India’s (RAI) Business Survey, marking a stable close to FY2026. Over the past six months, the sector has consistently maintained growth in the 9–10% range.

Growth was observed across all regions, with West and North India leading at 11% each. South India followed with 10% growth, while East India reported a 9% increase, reflecting a broadly balanced performance nationwide.

Among categories, food and grocery led with a 14% growth rate, followed by apparel at 13%, jewellery at 12%, and quick-service restaurants (QSRs) at 11%, with the latter sustaining strong momentum throughout the year. In contrast, consumer durables continued to face challenges, registering just 1% like-for-like growth as consumers delayed high-value purchases.

Looking ahead, rising operational costs are expected to shape FY2027. Increasing energy prices, higher logistics expenses, and elevated real estate rentals are putting pressure on margins despite steady revenue growth. While store footfalls have moderated, conversion rates have improved, indicating more intentional consumer behavior. Retailers are responding by focusing on localized assortments and sharper pricing strategies to align with evolving demand patterns.

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."