India’s Retail Sector Grows 8% in July as Festive Season Approaches: RAI Survey

RAI Business Survey Round 73 shows stronger retail growth, with QSR, food and grocery, footwear and apparel leading July

India’s retail sector recorded 8% year-on-year growth in July 2026, according to the Retailers Association of India’s (RAI) Business Survey Round 73. The survey shows growth across every day and needs-based category, while RAI’s SANKET report, produced with payments partner Innoviti, recorded 7.1% store-level demand growth in July, marking its strongest month since the quarter began.

The two sets of findings indicate a recovery in retail activity as retailers prepare for the upcoming festive season, although growth remained uneven across regions and categories.

North and South record 9% growth

Regional performance varied significantly during July. The North and South each recorded 9% growth, making them the strongest-performing regions in the survey. The West and East recorded 6% growth each.

The regional trend was also reflected in the SANKET data. The South remained the strongest-performing zone through the quarter, while the West experienced the sharpest movement, recording the largest decline in Q1 before registering the strongest rebound in July.

QSR and food and grocery lead category growth

Category-level results indicate that purchases were concentrated in routine and needs-based segments during the month.

Quick service restaurants (13%) and food & grocery (12%) recorded the highest growth rates, followed by footwear (10%) and apparel (8%).

Categories involving more considered purchases recorded comparatively lower growth. Furniture registered 1% growth, the lowest in the survey, while sports goods grew 4%, jewellery 6%, and consumer durables & electronics 7%.

Retail sector enters festive season on stronger base

According to RAI, the weakness seen during Q1 has now been followed by recovery in both overall retail growth and store-level demand. However, categories associated with larger purchases continue to grow at lower rates than segments linked to everyday consumption.

Commenting on the findings, Kumar Rajagopalan, Executive Director and Chief Executive Officer, Retailers Association of India, said, “July gave us two confirmations at once: topline growth held up, and genuine store-level demand, which had softened through the summer, came back with it. That matters heading into the festive season, because the big-ticket purchases are exactly the ones festive buying tends to unlock. The base retailers are working from this year is stronger than it was in April or May. Retailers are entering the festive season with optimism, anticipating stronger consumer demand. The job over the next few weeks is preparation i.e. inventory in place, staffing ready, and offers timed for a customer who buys on routine most of the year but saves the bigger decisions for the season that’s built for them.”