Retail sales in India recorded a 7% year-on-year increase in April 2026, reflecting continued stability in consumer demand despite persistent global cost pressures and cautious discretionary spending, according to the latest monthly Business Survey released by the Retailers Association of India (RAI).
The findings indicated that growth trends remained relatively balanced across regions and retail categories, although businesses continue to operate in a challenging environment marked by rising operating costs and selective consumer spending patterns.
Among regions, West India registered the strongest performance with 9% growth, followed by South India at 8%. North India and the pan-India average both stood at 7%, while East India recorded comparatively moderate growth of 5%.
Category-wise, apparel sales grew 8% year-on-year during the month, while footwear sales increased 7%, signalling sustained demand in fashion-related categories despite broader consumption caution.
The report noted that retailers are increasingly focusing on tighter inventory management, value-oriented offerings and operational efficiencies to protect margins amid inflationary pressures and evolving consumer behaviour. While discretionary purchases remain measured, demand in essential categories continues to support overall retail momentum.
Executive Director and CEO, RAI, Kumar Rajagopalan described the performance as stable though not exceptionally strong. He observed that global cost pressures were having a visible impact on business operations across retail categories. However, he added that India had managed these pressures better than many other markets, noting that consumer willingness to spend remained intact even as retailers adopted a cautious approach to business planning and operations.
