Retail sales in India grew 10% year-on-year in March 2026, according to the 69th edition of the Retail Business Survey released by the Retailers Association of India (RAI), bringing FY 2026 to a stable close. The sector has maintained a consistent growth trajectory of 9–10% over the past six months.
Regional performance remained broad-based, with West and North India leading growth at 11% each. Southern markets recorded 10% growth, while the East reported a comparatively modest 9% increase.
Category-wise, apparel emerged among the stronger performers with 13% growth, while footwear registered an 8% increase. Other segments showed mixed trends, reflecting evolving consumer priorities.
The outlook for FY 2027 is being shaped by rising cost pressures, including higher energy prices, logistics expenses and real estate rentals, which are compressing margins despite steady top-line growth. Physical footfall has moderated, although conversion rates have improved, indicating more purposeful consumer behaviour. Retailers are increasingly responding with localised assortments and sharper value positioning to align with this shift.
Kumar Rajagopalan stated that March 2026 closed FY 2026 on a stable and moderately strong note, with apparel among the categories leading growth. He added that global uncertainty and rising input costs—including energy, logistics and real estate—had created moderate pricing pressure across categories. He further noted that consumers are now more purposeful in their purchasing behaviour compared to two years ago, and that retailers aligning product offerings with value expectations are likely to see growth. He emphasised that FY 2027 would favour precision-driven strategies over scale-led expansion.
