India's retail sector saw a strong 11% growth during the extended 87-day festive period from 1 August to 26 October 2025, compared with the same window last year, according to fresh data released by the Retailers Association of India (RAI). The industry body said the growth signals a clear revival in consumption, driven primarily by categories that benefited from the recent GST rate cuts.
GST Cut Lifts Value-Driven Categories
RAI's retail business survey shows that consumers were more responsive to value-priced products, particularly in segments where GST rates were reduced.
Key categories like apparel and footwear priced below Rs 2,500, taxed at 12% GST, saw a noticeable jump in sales. In contrast, demand softened for premium apparel above Rs 2,500, where GST increased from 12% to 18% following rate rationalisation.
Category-Wise Growth Trends
The survey highlights broad-based momentum across major retail categories:
- Food & Grocery: up 12%
- Jewellery: up 12%
- Footwear: up 12%
- Sports Goods: up 11%
- Apparel: up 9%
- Beauty & Personal Care: up 9%
The shift reflects consumers' willingness to spend during festivals, but selectively prioritising value-led purchases over premium discretionary products.
West India Outperforms; All Regions Record Strong Growth
Regionally, retail demand remained strong across the country:
- West India: 13% growth - the highest
- North & East India: 10% growth each
- South India: 9% growth
The RAI noted that the pattern indicates broad-based consumption, not limited to metropolitan or high-income clusters.
'GST Bachat Mahotsav' Spurs Demand
The CEO of the Retailers Association of India said the sector's performance showed steady expansion through the year:
"Retail began the year with 4-5% growth and moved to 7-8% through April-July. The GST Bachat Mahotsav helped lift festive-period sales into double-digit territory. This suggests that while consumers remained active, they were selective in discretionary spending at higher price points. Most other categories, including jewellery, benefited from seasonal and occasion-led buying."
The association noted that the combined effect of festive momentum and GST rationalisation helped uplift retail demand, especially in mid-market segments.
QSRs and Furniture See Strong Festive Boost
Quick Service Restaurants (QSRs) emerged among the top-performing categories, signalling an uptick in dining-out trends and experience-led consumption. Meanwhile, the furniture category saw significant buying driven by home improvement, festive refurbishments and seasonal upgrades.
The overall trend, RAI said, reflects improving consumer sentiment, efficient pricing strategies post-GST rate cuts, and the willingness of households to spend on value-oriented categories during India's biggest shopping period of the year.
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