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India's retail sector expands 10% in August amid robust consumer spending

India's retail sector maintained steady expansion in August, recording double-digit year-on-year growth as consumers sustained spending across essential goods and discretionary categories. The performance signals strong momentum heading into the festive season.

LSN India · 23 September 2026

India's retail sector expands 10% in August amid robust consumer spending

India's retail sector expanded 10 per cent year-on-year in August, sustaining the recovery momentum from the previous month, according to findings from the Retail Association of India.

The pan-India growth was driven by consistent demand across regions and product categories, with West India leading regional performance at 11 per cent growth. South India matched the national average at 10 per cent, while East India and North India recorded more modest expansions of 8 per cent and 9 per cent respectively.

Essential and routine purchase categories proved resilient, with quick service restaurants posting the strongest performance at 15 per cent growth. The food and grocery segment, a key barometer of consumer health, expanded 12 per cent during the period, underlining steady household spending on necessities.

The survey suggests retailers are well-positioned for the approaching festive shopping season, traditionally the strongest period for Indian retail. The even distribution of growth across regions indicates the expansion is broad-based rather than concentrated in specific markets, a sign of underlying economic stability in consumer demand.