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Retail growth at 8%, could cross 10% with festive boost: RAI CEO Kumar Rajagopalan
India’s retail sector is gearing up for a festive boost, with growth expected to cross 10% after July’s 8% rise. Value and mid-segment retailers see recovery, though GST hikes and jewellery downsizing could temper discretionary spending.
The recent GST revisions are proving a mixed bag.
India’s retail industry is entering the festive season on a high, with growth momentum expected to cross 10%, according to the Retailers Association of India (RAI). After two years of subdued demand, value and mid-segment retailers, once under pressure, are finally witnessing an uptick alongside the continued strength of premium categories.
Kumar Rajagopalan, CEO of RAI, said that the retail growth has touched 8% levels and it can go up to 10% in the coming days, CNBC-TV18 reported. He noted that early celebrations this year could further fuel demand. Retail sales rose 8% in July, marking the third consecutive month of stronger performance.
The recent GST revisions are proving a mixed bag. Products priced below Rs 2,500, including garments and footwear, have become more affordable, but higher-priced items now attract an 18% GST, which Rajagopalan said could “dampen” festive spending in those segments.
Shifts in jewellery demand are also emerging. Consumers are moving towards design-led and diamond-studded pieces rather than pure gold and silver, given elevated bullion prices. Weddings may continue to drive premium purchases, but mid-segment buyers are expected to downsize, opting for 18–20 carat or smaller-ticket jewellery.
Consumer durables reflect uneven trends. Televisions and appliances may see a bump from lower prices, while mobiles remain expensive as GST rates are unchanged. Beauty products are likely to benefit modestly, though salons may not pass on full GST relief. White goods remain a “mixed bag,” with demand visible only in select categories.
Even as e-commerce and quick commerce gain share, Rajagopalan emphasized that offline retail remains resilient. “Large retailers and brands have embraced omni-channel strategies, while online-only players are now opening stores,” he said. However, traditional kirana stores remain the most vulnerable in this shifting landscape.
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