India’s retail sales rise 10% YoY in December 2025: RAI survey
India’s retail sales in December 2025 grew 10 per cent compared to December 2024, according to the 67th edition of the Retail Business Survey released by the Retailers Association of India (RAI), extending the double-digit momentum recorded during the festive season.
The festive period had recorded 11 per cent growth, and December’s performance indicates that demand remained steady through the year-end, supported by consistent footfalls and selective discretionary spending across markets, the RAI said in a press release.
Across categories, the survey highlighted a clear differentiation between consumption-led segments and discretionary categories. The apparel and clothing, as well as footwear categories, each recorded 9 per cent growth, remaining within single-digit territory, reflecting a more value-conscious consumer environment and the influence of pricing structures across segments.
India’s retail sales rose 10 per cent YoY in December 2025, extending festive momentum, the Retailers Association of India said.
Growth remained broad-based across regions, led by the West.
Consumption-led segments outperformed discretionary categories, with apparel staying in single digits amid price sensitivity shaped by GST thresholds.
Overall demand stayed stable, supported by steady footfalls.
Regionally, retail growth in December 2025 remained broad-based. The West recorded the strongest performance at 14 per cent, followed by the South at 11 per cent and the North at 10 per cent. The East, though relatively slower, still posted positive growth of 7 per cent. This distribution reflects a balanced demand environment, with no single geography accounting for a disproportionate share of expansion.
The current GST framework for apparel, with a 5 per cent tax rate up to ₹2,500 per piece and a higher tax incidence above this threshold, continues to influence pricing strategies, assortment planning and purchase behaviour, particularly in the mid-to-premium segments. This has led to sharper price sensitivity and more selective buying patterns within the category.
“December’s numbers show that consumption has remained stable beyond the festive period, but the variation across categories is becoming more evident. While everyday consumption and experience-led segments continue to perform well, discretionary and upgrade-driven categories are growing more cautiously. This is a phase where execution and value delivery will be as important as topline growth,” said Kumar Rajagopalan, chief executive officer, Retailers Association of India.
RAI’s business surveys during the non-festive months of 2025 had pointed to moderate but gradually improving growth, which strengthened in the second half of the year and culminated in a double-digit festive season followed by sustained December demand. Together, these trends suggest a retail environment that is stable but increasingly selective and value driven as the sector enters 2026, added the release.
Fibre2Fashion News Desk (SG)
