India’s retail sector recorded a moderation in growth in February 2026, with sales rising 9% year-on-year, signalling a stabilisation in consumption following a strong festive-driven surge in the preceding months, according to the latest survey by the Retailers Association of India (RAI).
The report indicated that growth remained broad-based across categories, with apparel and clothing emerging as the top-performing segment, registering a 12% increase during the period.
The survey suggested that overall consumption trends remain resilient despite seasonal tapering after the festive and wedding period, reflecting steady demand conditions in the market.
Regionally, the western and eastern parts of the country led performance, each recording 10% growth, followed by northern India at 9% and southern India at 8%.
The data also highlighted continued traction in both urban and non-metro markets, underscoring the role of broader consumption drivers beyond major cities.
Kumar Rajagopalan, Chief Executive Officer of RAI, stated that retail growth in February reflected a normalisation to more stable consumption levels following strong festive demand. He added that the broad-based performance across regions and continued strength in categories such as apparel indicated that underlying consumption remained steady.
He further noted that retailers were beginning to experience pressure from rising input costs, particularly due to developments in global energy markets, which could weigh on margins. He added that the evolving geopolitical situation in the Gulf region was introducing additional uncertainty, with potential implications for fuel prices and supply chains.
Industry observers indicated that while demand fundamentals remain intact, cost pressures could influence pricing strategies and profitability in the coming months, especially for retailers operating in competitive segments.
Bharat Tex Special Report 2026 
