India Retail Sales Rise 5% Year-on-Year in May 2026, RAI Business Survey Shows

QSR and Food & Grocery categories lead retail growth as consumer spending remains measured across regions

Retail sales across India recorded 5% year-on-year growth in May 2026, according to Round 71 of the Retailers Association of India’s (RAI) monthly Business Survey.

Among regions, West India registered the highest retail growth at 6%, followed by North India and South India, each recording 5% growth. East India reported 4% growth, reflecting a comparatively moderate pace of consumer demand.

Category-wise, Quick Service Restaurants (QSR) posted the highest growth at 9%, while Food & Grocery recorded 8% growth. Footwear registered 6% growth, and Apparel & Clothing, Jewellery, and Sports Goods each recorded 5% year-on-year growth.

The survey indicated that retailers continue to experience measured consumer spending patterns, with value-conscious purchasing behaviour influencing demand across product categories. Businesses remain focused on inventory optimisation, customer engagement and operational efficiency, while increasing the use of AI-driven analytics and digital technologies to support decision-making, enhance customer experiences and maintain growth and profitability.

Kumar Rajagopalan, CEO, RAI, said:

"Growth eased to 5% in May, down from 7% in April, as inflationary pressures from global conflict weighed on consumer sentiment. Retailers are watching the situation closely as spending turns more cautious."