Retailers Association of India (RAI) said the growth outlook for the retail industry in FY27 is likely to be in the range of mid to high single digit growth. It added geopolitical uncertainties, logistics costs and margin pressures remain as key monitorables.
RAI noted that in the April 2025-February 2026 period, the industry witnessed acceleration in consumption momentum with growth which began the fiscal year at 4-5 per cent, surged to 7-8 per cent by mid-year and peaked at 10-11 per cent during the festive season.
It noted that Experience-led categories performed well while strong traction was witnessed in value segments such as apparel priced at ₹2,500 and below. “ While the West and North led early growth during the April-February period, Tier 2 and Tier 3 cities across the East and South demonstrated remarkable demand resilience, signalling a broad-based consumption environment,” the industry body added.
“Growth that began at 4-5 per cent and reached 10-11 per cent during festivities isn’t just economic momentum. It’s evidence of a deliberate, discerning Indian consumer who knows what they want and refuses to overpay for what they don’t. To navigate FY 2026-27, we must recognise that connected commerce is fundamentally a trust equation. When a customer walks into your store with intent rather than impulse, they’re giving you a chance, not a guarantee. The conversion happens when your store understands their region, their price point, and their aspiration,” said Kumar Rajagopalan, CEO, Retailers Association of India
Meanwhile the industry body flagged “margin squeeze” being witnessed by retailers driven by global and domestic pressures. “Tensions in the Gulf region have introduced significant uncertainty into energy markets and supply chains. Retailers are grappling with rising energy costs, logistics expenses, and real estate rentals. These input costs, alongside fluctuating raw material prices, necessitate a focus on supply chain efficiency and value engineering to protect margins without hurting consumer demand,” RAI stated.
Published on April 13, 2026