Retail Sales in India Rise 7% in May, Led by South India’s 9% Growth: RAI Report

India’s retail sector showed signs of renewed momentum in May 2025, with overall sales climbing 7% year-on-year, according to the latest Retail Business Survey released by the Retailers Association of India (RAI).

Regional performance was led by South India, which posted the strongest annual growth at 9%. Western India followed with 7% growth, while the North and East recorded increases of 6% and 4% respectively.

“After months of modest growth in the 4-5% range, the 7% uptick in May points to a resurgence in consumer confidence,” said Kumar Rajagopalan, CEO of RAI. “We’re seeing particular strength in discretionary spending categories, and this bodes well for the upcoming festive season.”

Among retail categories, quick service restaurants (QSRs) outperformed with a 10% rise in sales. Consumer durables & electronics and furniture each grew by 8%, while apparel and jewellery followed close behind with 7% growth. Beauty & wellness and food & grocery sectors saw a 6% boost, whereas footwear and sports goods posted the slowest growth at 5%.

Retailers are hopeful that this upward trend will continue into the second half of the year, driven by improving economic conditions and festive season demand.