India's Retail Sector Sees 6% Growth Amid Global Trade Challenges

In March 2024, Indian retail sales grew by 6% compared to the previous year, driven by strong demand despite global trade uncertainties. North and West India led with 8% growth, while food, grocery, and QSR categories saw significant increases. India's retail sector, predicted to grow massively, remains resilient.

In March, the Retailers Association of India (RAI) reported a 6% increase in retail sales compared to the same month last year, indicative of steady domestic demand amid global trade instability. This growth highlights India's retail sector's resilience despite facing broader economic uncertainties.

According to regional data, North and West India recorded the highest year-on-year growth rate at 8% each. Meanwhile, East and South India posted a 5% uptick. Food and grocery topped category growth with 11%, with quick service restaurants witnessing a 9% rise. In contrast, footwear and consumer durables-electronics experienced slower growth rates of 2% and 3%, respectively.

Kumar Rajagopalan, CEO of RAI, remarked on the sector's cautious yet promising outlook. While discretionary spending shifts across categories, the overall trend shows cautious consumer spending without significant drops. RAI's report and a separate study by the Boston Consulting Group project India's retail market to reach Rs 190 trillion by 2034, driven by unique demographic trends such as increasing affluence and a growing middle class.

(With inputs from agencies.)