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India’s retail sector posted an 8% year-on-year growth in July 2025, led by a strong performance in the Quick Service Restaurant (QSR) segment, according to the latest Retail Business Survey by the Retailers Association of India (RAI).
The report highlights a steady upward trend in consumer spending, particularly in discretionary categories, as the sector prepares for the upcoming festive season — a key revenue period for retailers across the country.
“Retail sales in July 2025 grew 8% year-on-year. For the past three months, growth has held steady at 7–8%, which is higher than what we were seeing at the start of the year,” said Kumar Rajagopalan, CEO of RAI. “This suggests that consumers are spending a little more on discretionary products, and retailers will be watching closely to see if this continues through the festive season.”
- QSRs lead growth: Quick Service Restaurants recorded double-digit growth, signaling strong consumer appetite for dining out and convenience-based food consumption.
- Discretionary categories resilient: Apparel, jewellery, sporting goods, and furniture all saw 9% growth, reflecting sustained interest in non-essential spending.
- Moderate gains in other segments: Footwear and beauty & wellness grew by 5%, while Consumer Durables & IT rose by 6%.
- Regional trends: Retail sales rose by 8% in West, East, and South India, while North India recorded a slightly lower growth of 7% year-on-year.
The findings come amid broader industry anticipation of upcoming policy changes and pending GST reforms, with businesses navigating a landscape shaped by global economic uncertainties and evolving consumption patterns.
“Global uncertainties remain a factor, and GST reforms are still under discussion, so their impact is yet to be seen. The industry is moving ahead with cautious optimism,” Rajagopalan added.
As retailers brace for the high-stakes festive quarter, July's performance offers a hopeful outlook — suggesting that consumer sentiment, while measured, remains strong.
