India’s Retail Sales Grow 8% in September 2026 Ahead of Festive Season: RAI Survey
West India leads regional growth at 10%, while QSR, Food & Grocery and Apparel record the strongest category performance
India’s retail sales grew 8% year-on-year in September 2026, according to the Retailers Association of India (RAI) Business Survey Round 75. With major festive celebrations falling later in 2026 than in the previous year, the findings indicate continued consumer spending ahead of the main festive shopping period.
Festive Calendar Shapes September Retail Performance
The timing of the festive season is an important factor in assessing September’s retail growth. In 2025, Navratri began on September 22, followed by Dussehra on October 2 and Diwali on October 20. In 2026, Navratri began on October 11, Dussehra fell on October 20, and Diwali is scheduled for November 8.
Consequently, September 2025 included the beginning of festive purchasing, while September 2026 largely represented the pre-festive period.
RAI’s business surveys recorded retail growth of 7% in May 2025, followed by 8% in both June and July, ahead of the main festive season. September 2026’s 8% growth provides an indication of retail demand at a comparable pre-festive stage, although differences in reporting periods mean the figures are not directly equivalent.
West India Leads Regional Sales Growth
West India recorded the highest regional retail sales growth in September 2026 at 10%, followed by South India at 9%. North India registered 7% growth, while East India recorded 5%.
All four regions reported positive year-on-year growth, indicating continued consumer spending across the country.
QSR, Food & Grocery and Apparel Lead Retail Categories
Quick Service Restaurants (QSR) recorded the strongest category performance, with sales growth of 11% in September. Food & Grocery and Apparel & Clothing followed at 9% each.
Other retail categories reported the following growth rates:
- Beauty, Wellness & Personal Care: 7%
- Consumer Durables & Electronics: 7%
- Sports Goods: 6%
- Jewellery: 6%
- Footwear: 5%
Retail Growth Moderates from August
Overall retail sales growth eased from 10% in August 2026 to 8% in September. Several categories also recorded slower year-on-year growth during the month.
QSR growth declined from 15% in August to 11% in September. Food & Grocery growth eased from 12% to 9%, while Apparel & Clothing moved from 10% to 9%. Consumer Durables & Electronics maintained its growth rate at 7%.
Although the figures indicate a moderation in the pace of growth, the later festive calendar means the impact of seasonal demand is expected to become clearer in the following months.
RAI Highlights Outlook for the Festive Season
Commenting on the findings, Kumar Rajagopalan, Chief Executive Officer of the 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.”
Retailers Monitor Consumer Spending Ahead of November
With festive shopping extending further into November in 2026, retailers will be monitoring spending across discretionary and essential product categories.
The September results provide an indication of demand before the main festive period. Sales performance in October and November is expected to offer a more complete picture of consumer spending during the season.