India Retail Sales Grow 9% in February 2026: RAI Survey
25 March 2026: Retail sales in India recorded a 9% year-on-year increase in February 2026, according to the latest survey by the Retailers Association of India. The data indicates a stabilisation in consumption following strong festive demand in previous months. Growth remained consistent across regions and key retail categories.
Retail sales in India grew by 9% year-on-year in February 2026, reflecting a moderation after the festive-driven demand seen in November and December, according to the latest Retail Business Survey released by the Retailers Association of India.
The survey shows that consumption trends have stabilised, with demand remaining steady despite a decline in seasonal spending linked to the festive and wedding period.
Regionally, growth was relatively higher in the West and East, both reporting 10% growth. North India recorded 9% growth, while South India reported 8%.
Across categories, apparel and clothing, along with food and grocery, recorded the highest growth rates at 12% and 11% respectively. Consumer durables and other discretionary segments showed comparatively lower growth at 7%.
The data indicates that consumption demand continues to be supported by urban markets, along with contributions from non-metro regions.
Retailers are also facing rising input cost pressures, particularly due to global developments in energy markets. These factors may have implications for pricing and margins.
Commenting on the findings, Kumar Rajagopalan, Chief Executive Officer, RAI, said, “After a strong festive-led performance in November and December, retail growth in February reflects a normalisation to more stable consumption levels. The broad-based performance across regions and continued strength in key categories such as apparel and food & grocery indicate that consumption remains steady.”
“At the same time, retailers are beginning to feel the impact of rising input costs, particularly on account of global developments around energy markets. While demand continues to hold, these cost pressures are starting to weigh on margins. The evolving geopolitical situation in the Gulf region adds an additional layer of uncertainty, and its implications for fuel prices and supply chains could pose challenges for the sector going forward. Overall, consumption remains stable, but the operating environment is becoming more complex. Growth in the coming months will depend on how effectively retailers navigate cost pressures while continuing to serve an increasingly diverse and evolving consumer base.”
Industry stakeholders noted that global geopolitical developments, including tensions affecting key energy supply routes, may influence inflation and logistics costs, although the immediate impact on consumer demand remains limited.
Future growth in retail is expected to be supported by demand fundamentals such as expansion in non-metro markets, improvements in supply chain efficiency, and ongoing changes in retail formats.
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