India’s Retail Sector Records 10% Growth in August, RAI Survey Shows
Retail sales growth rises for the third consecutive month as the sector prepares for the festive season
India’s retail sector recorded 10% year-on-year (Y-o-Y) growth across the country in August 2026, according to Business Survey Round 74 by the Retailers Association of India (RAI). The August performance follows growth of 8% in July and indicates continued consumer demand across regions and retail categories ahead of the festive season.
Regional Retail Growth
Retail sales growth in August remained positive across all major regions. West India recorded the highest growth at 11% Y-o-Y, followed by South India at 10%, in line with the Pan-India growth rate.
North India registered 9% growth, while East India recorded 8% during the month.
The regional figures were:
- West India: 11%
- South India: 10%
- North India: 9%
- East India: 8%
- Pan-India: 10%
QSR and Food & Grocery Lead Category Growth
Essential and routine consumption categories continued to account for some of the higher growth rates during August.
Quick Service Restaurants (QSR) recorded the highest category growth at 15%, while Food & Grocery grew by 12%.
Within lifestyle categories, Apparel registered 10% growth, while Footwear grew by 8%. Consumer Durables & Electronics recorded 7% growth, stabilising after reaching an earlier peak in April.
Retail Growth Recovers After May Low
The survey data shows that retail growth weakened after April before recovering steadily over the following months. Growth stood at 7% in April, declined to 5% in May, and then increased to 6% in June, 8% in July and 10% in August.
The August figures show West India leading the regional growth at 11%, with Pan-India and South India both at 10%, followed by North India at 9% and East India at 8%.
Commenting on the results of Business Survey Round 74, Kumar Rajagopalan, Executive Director and CEO, Retailers Association of India (RAI), said:
"While momentum softened following April, we have seen a clear and encouraging rebound since July. August’s strong performance serves as a promising prelude to the upcoming festive season, and our focus now turns to precise execution and inventory planning to capture seasonal demand. While India’s internal consumption story remains resilient, we maintain a measured and cautious approach in light of broader global macroeconomic conditions."
Festive Season Preparation
The August performance comes ahead of India’s upcoming festive retail period. The survey indicates continued growth across key consumption categories, while retailers are turning their attention to inventory planning and execution as they prepare for seasonal demand.