Indian retail sector records modest growth of 5 percent in January: RAI Survey
The Retailers Association of India (RAI) in its 58th Retail Business Survey has stated that Indian retail sector witnessed a 5 per cent sales growth in the retail sector in January 2025 compared to the same time period last year. The survey highlights key trends shaping various retail segments across different regions of the country and revealed that the highest sales growth witnessed in West India with sales growth of 7 percent, followed by North and South India with sales growth of 5 percent each, while East India experienced sales growth of 4 percent.
RAI CEO Kumar Rajagopalan has said that the 5 percent year on year retail growth recorded in January is led by food and grocery growth at 13 per cent, followed by consumer durables and quick-service restaurant with sales growth at 6 percent each, indicating a rise in consumer spending in these categories. He said the tax exemption limit of Rs 12 lakh provided by the Union Budget 2025 will provide relief to retailers after last year’s slowdown. He further added that the consumer choices are very diverse and retailers must adapt to these shifts, understand evolving preferences, and build the right operating model to stay competitive.
In December 2024, the retail sector registered a year-on-year sales growth of 5 percent. During the same period, highest sales growth of 6 percent was seen in South India followed by West and North India each recorded a 5 percent sales growth, while in East India sales grew at 4 percent. The survey’s findings suggest that consumers are willing to spend where they perceive value and retailers have to adopt with the changing trends and build their strategies accordingly for upcoming seasons.
