The Indian retail sector continued its upward trajectory in July 2025, recording an 8% year-on-year growth in sales, according to the 64th Retail Business Survey conducted by the Retailers Association of India (RAI). This positive momentum comes at a crucial time when retailers are closely monitoring policy shifts and preparing for the upcoming festive season, traditionally the most lucrative period for the industry. The report reflects a balanced mix of optimism and caution among retailers, as they navigate global economic uncertainties, evolving consumer behavior, and the anticipation of potential reforms in the Goods and Services Tax (GST) structure. Notably, Quick Service Restaurants (QSRs) led the growth curve with double-digit expansion, underscoring India’s growing appetite for eating out and convenient dining options. This surge reflects a lifestyle shift among urban and semi-urban consumers who increasingly favor speed, accessibility, and variety in food services. The robust performance of QSRs also signals the sector’s strong recovery post-pandemic, driven by changing food habits and increased consumer confidence in hygiene and delivery standards.
Beyond food services, several key categories demonstrated resilient growth. Apparel, jewellery, sporting goods, and furniture each registered a 9% year-on-year increase in July, indicating sustained consumer demand for discretionary and lifestyle-oriented purchases. These segments continue to benefit from a rise in aspirational spending, digital penetration, and improved product accessibility through omni-channel retail strategies. Despite inflationary pressures and fluctuating input costs, consumers appear willing to invest in non-essential categories, a promising indicator ahead of the festive months. Meanwhile, the footwear and beauty & wellness segments posted a modest 5% growth, while consumer durables and IT categories saw a 6% increase, suggesting a steady, if slightly moderated, demand in these sectors. These figures point to an evolving consumption landscape, where experience, value, and convenience are becoming primary drivers of purchase decisions. The growth in furniture sales also highlights a potential rise in real estate activity and hybrid work models that continue to influence home improvement spending.
Kumar Rajagopalan, CEO of RAI, noted that retail sales have shown consistent growth over the past three months, holding steady between 7–8%, which is an improvement over the early part of 2025. “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. 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. 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,” he said. His statement encapsulates the industry’s current sentiment—measured hopefulness grounded in realistic expectations amid a complex global economic environment.
RAI’s survey, which reflects inputs from retailers across formats and regions, plays a crucial role in capturing ground-level trends and guiding business strategies. The retail industry, which contributes significantly to employment generation and economic activity, relies on such data to anticipate consumer shifts, optimize inventory, and align marketing with demand patterns. As retailers move forward into the high-stakes festive quarter, maintaining this growth trajectory will depend on continued policy support, stable inflation, and the ability of brands to adapt to fast-changing consumer expectations. Moreover, reforms such as ease in GST compliance and improved infrastructure will further boost retail competitiveness. As the unified voice of Indian retailers, RAI continues to collaborate with government bodies and stakeholders to drive sustainable growth, foster innovation, and ensure the retail sector remains a robust engine of India’s economic development.
Visit: www.rai.net.in
Subscribe our WhatsApp Channel FREE to get regular updates – Click here
Enlist your name FREE in Apparel Manufacturers Directory – Click here
