Is the Retail Sector in India Poised for 9-10% Growth Soon?
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Synopsis
The Indian retail sector is on the verge of significant growth, projected to reach 9-10% soon. With a current value of $900 billion, it shows strong recovery signs post-pandemic. Key insights from RAI reveal consumer spending is increasing, particularly in discretionary items, setting the stage for a vibrant festive season ahead.
Key Takeaways
- The Indian retail sector is valued at $900 billion.
- Current growth is at 5% but expected to reach 9-10%.
- RAI indicates a rebound in consumer spending.
- Southern India leads with 9% growth in May.
- Festive season may boost retail sales further.
New Delhi, June 29 (NationPress) The Indian retail sector, valued at $900 billion, is demonstrating robust signs of recovery and is anticipated to accelerate its growth in the upcoming months, as reported by the Retailers’ Association of India (RAI).
The current growth rate stands at 5%, but it is expected to soon escalate to a range of 9 to 10 percent.
RAI's CEO Kumar Rajagopalan noted that following the pandemic, the sector rebounded strongly with a growth rate of 20 percent.
“However, over the past year, growth has slowed to approximately 5 percent. With market stability, increased consumer spending, and an appropriate consumer base in place, the sector is beginning to exhibit signs of accelerated growth once again,” he added.
According to RAI’s 62nd Retail Business Survey, retail sales throughout India surged by 7 percent in May 2025 compared to the same month last year.
This represents a significant improvement following months of moderate growth fluctuating between 4 to 5 percent.
Regionally, southern India led the charge with a 9 percent increase in retail sales during May.
Western India followed closely with 7 percent, while the northern and eastern regions reported growth rates of 6 percent and 4 percent, respectively, according to the report.
Among various segments, quick service restaurants (QSR) exhibited the highest growth at 10 percent.
Consumer durables and electronics, along with furniture, also performed admirably with an 8 percent rise in sales each.
Rajagopalan stated that this uptick indicates that consumers are increasingly willing to spend, particularly on non-essential or discretionary items.
Looking forward, the CEO of RAI expressed optimism regarding the upcoming festive season.
He mentioned that the improving consumer sentiment could further enhance retail sales, bringing the sector closer to double-digit growth in the near future.
Point of View
It's crucial to recognize the resilience of the Indian retail sector post-pandemic. The reported growth trends are not just numbers; they represent a shift in consumer behavior and economic recovery. The upcoming festive season could further bolster these positive trends, making it essential for stakeholders to adapt and innovate in this evolving landscape.
NationPress
29/06/2025
Frequently Asked Questions
What is the current value of the Indian retail sector?
The Indian retail sector is currently valued at $900 billion.
What growth rate is expected for the retail sector soon?
The retail sector is expected to grow at a rate of 9-10% soon.
Which region in India has shown the highest growth in retail sales?
Southern India reported a 9% growth in retail sales.
What segment of retail showed the highest growth rate?
Quick service restaurants (QSR) displayed the highest growth at 10%.
What factors are contributing to the growth of the retail sector?
Factors include market stability, increased consumer spending, and a solid consumer base.
