Indian Retail Sector Set for Accelerated Growth, Eyes 9–10% Surge: RAI

India’s retail industry is regaining strong momentum and is poised to see a significant uptick in growth, according to the Retailers’ Association of India (RAI). Valued at around $900 billion, the sector is expected to accelerate to a growth rate of 9–10% in the coming months, up from its current 5%.

Kumar Rajagopalan, CEO of RAI, noted that while the sector had rebounded sharply post-pandemic—with growth touching 20%—the past year saw a slowdown to nearly 5%. However, renewed consumer confidence, rising spending, and market stability are now fueling fresh optimism.

"With the right consumer base and improved market conditions, the retail sector is once again gathering steam,” Rajagopalan said.

Insights from RAI’s 62nd Retail Business Survey support this outlook. Retail sales in May 2025 rose 7% year-on-year, marking a significant jump from recent months that hovered between 4% and 5% growth.

Regionally, South India led the charge with a 9% increase in sales, followed by the West (7%), North (6%), and East (4%).

Among retail segments, quick service restaurants (QSRs) posted the strongest performance with a 10% rise in sales. The consumer durables and electronics sector, as well as furniture, also saw robust 8% growth.

The rising demand for non-essential and discretionary items, Rajagopalan pointed out, is a clear sign that consumers are more willing to spend, a key driver for future expansion.

Looking ahead, RAI remains upbeat about the upcoming festive season. A continued rise in consumer sentiment, it believes, could help push the sector towards sustained double-digit growth.

(IANS)