Accelerating Retail Sector Momentum: Anticipated Growth Rates Ranging from 9-10% Imminent, According to Retailers' Association of India (RAI)
Hear Ye, Hear Ye: The bustling Indian retail scene, currently estimated at a whopping $900 billion, is demonstrating a remarkable recovery and is gearing up for a much faster growth spurt in the imminent future, as per the Retailers' Association of India (RAI).
Sitting pretty at a growth rate of 5%, this sector is about to kick it up a notch and race towards growth rates of 9 to 10%. RAI's bigwig, Kumar Rajagopalan, shared that soon after the pandemic, the retail sector rallied back like a boss, seeing a staggering 20% growth rate.
However, over the last year, growth slowed down to a more modest 5%. But now, with the markets back on their feet, consumers whipping out their wallets, and the perfect shopping crowd in place, the sector is once again heading for a growth surge.
As per RAI's 62nd Retail Business Survey, retail sales crosswise India zoomed by 7% in May 2025, compared to the same month the previous year. This is a significant leap after months of tepid growth, ranging between 4 to 5%.
Geographically, southern India set the pace with a 9% surge in retail sales in May. Not far behind was western India with a 7% increase, while the northern and eastern regions registered growth of 6% and 4% respectively, as per the report.
In terms of different segments, quick service restaurants (QSR) took the lead with a 10% growth, followed closely by consumer durables, electronics, and furniture with a 8% rise each.
Rajagopalan noted this increase signals that people are now ready to splurge, especially on non-essential items. Looking ahead, he expressed confidence about the upcoming festival season. He hinted that the improving consumer sentiment could further spur retail sales and bring the industry closer to double-digit growth in the near future.
The retail sector in India, propelled by its current growth rate of 5%, is about to witness an acceleration towards growth rates of 9 to 10%, as suggested by Kumar Rajagopalan, the head of Retailers' Association of India (RAI). As the financial dynamics of the sector unfold, it is anticipated that the industry's focus on business expansion could potentially drive the retail industry towards double-digit growth in the near future.
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