Retail sales in India grew 5% year-on-year in May 2026, according to Round 71 of the Retailers Association of India’s (RAI) monthly Business Survey. Across regions, West India led retail growth at 6%, followed by North and South India at 5% each. East India reported a relatively subdued growth of 4%, reflecting a more measured pace of consumer demand.
Among categories, Quick Service Restaurants (QSR) led the growth chart with 9% growth, followed by Food & Grocery at 8%. Footwear recorded growth of 6%, while Apparel & Clothing, Jewellery, and Sports Goods each grew by 5%.
Retailers continue to witness measured consumer spending patterns, with value-conscious purchasing behaviour influencing demand across categories. Businesses are maintaining a strong focus on inventory optimisation, customer engagement, and operational efficiencies, while increasingly leveraging AI-driven analytics and digital technologies to enhance decision-making, improve customer experiences, and sustain growth and profitability.
Kumar Rajagopalan, CEO, RAI “Growth eased to 5% in May, down from 7% in April, as inflationary pressures from global conflict weighed on consumer sentiment. Retailers are watching the situation closely as spending turns more cautious.”
