Retail Sales In India Jump 7 Per Cent In May, Sector Eyes Double-Digit Growth

Although the industry is presently expanding at a modest annual rate of 5 per cent, RAI believes the pace is likely to pick up and touch 9 to 10 per cent in the coming months.

Regionally, southern India led retail growth with a 9 per cent increase, followed by the western region at 7 per cent. Northern India recorded a 6 per cent rise, while the eastern region saw 4 per cent growth.

Source : Freepik

India's retail sector, currently estimated at $900 billion in size, is demonstrating signs of a healthy revival and could soon witness accelerated growth, according to the Retailers’ Association of India (RAI).

Although the industry is presently expanding at a modest annual rate of 5 per cent, RAI believes the pace is likely to pick up and touch 9 to 10 per cent in the coming months, reported IANS.

Kumar Rajagopalan, CEO of RAI, highlighted that the sector had initially recovered robustly after the pandemic, clocking a growth rate of 20 per cent. However, over the past year, the momentum had slowed to around 5 per cent. “Now, with the markets stabilising, consumers spending more, and the right consumer base in place, the sector is once again showing signs of faster growth,” he stated.

Regional Surge and Category-Wise Gains

Insights from RAI’s 62nd Retail Business Survey indicate a 7 per cent rise in retail sales across India during May 2025 compared to the same period last year. This uptick signals an encouraging shift after several months of subdued growth ranging between 4 to 5 per cent.

Regionally, southern India led retail growth with a 9 per cent increase, followed by the western region at 7 per cent. Northern India recorded a 6 per cent rise, while the eastern region saw 4 per cent growth.

Segment-wise, quick service restaurants (QSR) showed the strongest performance with a 10 per cent increase. Consumer durables and electronics, as well as furniture, each registered 8 per cent growth, indicating a greater willingness among consumers to spend on discretionary items.

Looking forward, Rajagopalan expressed confidence that the upcoming festive season would bolster consumer spending. “The improving consumer sentiment could further boost retail sales and bring the sector closer to double-digit growth in the near future,” he said.