Retail sales in the country rose by a modest 4% year-on-year in April, according to a survey by the Retailers Association of India (RAI). This is lower than 6% y-o-y growth witnessed in March.
According to the 61st Retail Business Survey, the domestic demand remains steady at a time when global trade conditions remain unsettled.
The growth was led by quick service restaurant (QSR) category which recorded an 11% jump in sales compared to April 2024. It was followed by the beauty, wellness and personal care, and food and grocery categories which grew 6% each.
The slowest growth of 1% was recorded in two categories — sports goods, and consumer durables and electronics — according to the survey.
Regional data showed that north and west India recorded the highest year-on-year growth at 6% and 5%, respectively. East and south India recorded a lower increase of 2% each.
Kumar Rajagopalan, CEO of RAI, said footfalls in stores are reducing. However, customers who come to stores are buying with a purpose and are experiencing new product introductions.
“Retailers who have innovative products or aspirational products are performing very well in the market,” he said.
In February this year, a joint report by the Boston Consulting Group (BCG) and RAI projected that the country’s retail sector is set to experience massive growth, with the market projected to reach Rs 190 lakh crore by 2034. This growth was attributed to a number of factors, including India’s unique demographic trends such as rising affluence alongside a vast middle class, a large middle-aged adult population, and workforce participation by women.