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India's retail sector recorded a 7% year-on-year sales growth in May 2025, according to the Retailers Association of India's latest survey, signalling revived consumer confidence and rising discretionary spending. South India led with a 9% increase, followed by the West (7%), North (6%), and East (4%). Quick Service Restaurants (QSRs) topped category growth at 10%, while electronics and furniture both saw 8% gains. RAI CEO Kumar Rajagopalan noted this as a shift from recent modest growth trends, with a positive outlook for the festive season. Retailers are optimistic that strong category and regional trends will continue in the coming months.
Retail sales across India witnessed a year-on-year growth of 7% in May 2025, according to the 62nd Retail Business Survey conducted by the Retailers Association of India (RAI). This performance marks a significant improvement from the 4-5% moderate growth observed over previous months, indicating an upswing in consumer sentiment and a revival in discretionary spending. Advertisement
The survey outlined several trends driving the retail landscape across the country's regions. South India emerged as the top performer, clocking a 9% year-on-year increase in sales. The western region followed with a 7% rise, while North and East India posted growth figures of 6% and 4%, respectively.
Category-wise, Quick Service Restaurants (QSRs) stood out, recording a robust 10% growth. Consumer durables and electronics (CDIT) along with furniture also showed healthy momentum, with both sectors witnessing an 8% rise in sales compared to the same month last year.
Kumar Rajagopalan, CEO of RAI, noted that retail businesses had been experiencing tepid growth in recent months. However, he observed that the latest 7% jump in May indicated accelerating growth, particularly in non-essential spending. He added that the outlook for the upcoming festive season remained positive, with expectations of continued improvement in retail performance.
With QSRs, electronics, and furniture showing sustained interest, the sector appears well-positioned for further growth. As regional trends strengthen and consumer confidence revives, retailers are expected to capitalise on the momentum, particularly with the festive season on the horizon. The coming months will likely offer clearer insights into the durability of this upward trend.
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