For the first time in nearly three years, retail sales have climbed back into double-digit territory, crossing the 10% mark in the August–October period, according to data released on Friday by the Retailers Association of India (RAI). Sales rose 11% for the quarter, driven by a combination of GST cuts and robust festive season demand, RAI, an apex body of organised retailers, said. Retail last posted double-digit growth in February 2023, when sales expanded 15% for the month.
“Retail began the 2025 calendar year with 4–5% growth and moved to 7–8% through April–July following the income tax cuts and lowering of interest rates. The GST Bachat Mahotsav, between August and October, lifted festive-period sales into double-digit territory,” Kumar Rajagopalan, CEO, RAI, said.
Though the August-October period was marked by delayed trade and consumer buying between August 15 and September 21, which hurt the performance of retailers, RAI says there was a sharp uptick in sales following the GST 2.0 implementation on September 22.
The GST effect
This was led by pent-up demand and value segment buyers who returned to the market after nearly two years as products became affordable. The GST 2.0 reforms consolidated India’s four-tier GST rate structure into a two-tier system including 5% and 18%. Sin goods such as soft drinks and tobacco products were put in a special 40% GST tax bracket.
Category performance and regional consumption trends
Categories including food and grocery, apparel, footwear, beauty and personal care, and sports goods—segments that benefited from rate rationalisation posted a 9–12% jump in sales between September 22 and October 26. Furniture and furnishings and QSR chains also saw a lift from stronger discretionary spending, registering 13–15% growth in the same period. Consumer durables and electronics lagged, rising just 6%, partly due to transition issues during the GST shift.
“Value-led categories, including apparel under Rs 2,500 and footwear in the 12% GST slab, saw steady growth. But apparel priced above Rs 2,500, which moved from 12% to 18% GST, showed comparatively lower traction. This suggests that while consumers remained active, they were selective in discretionary spending at higher price points,” Rajagopalan said.
Jewellery sales rose 12% during August–October, driven largely by seasonal and occasion-based buying rather than GST changes. But value buyers remained out of the market on account of steep gold prices, a point that was highlighted by most organised retailers such as Titan, Kalyan Jewellers, PN Gadgil and Senco Gold and Diamonds during their September quarter results.
While jewellery retail sales, according to RAI, registered a 12% growth between August and October, this was largely led by premium buyers, who remained mostly immune to the steep rise in gold prices.
Among regions, West India led with 13% growth, followed by North and East at 10% growth each, and South India at 9% growth, reflecting a broad-based consumption pattern, RAI said.