June saw a notable 5% increase in retail sales across the nation as rising disposable incomes drove a spike in household consumption expenditure on goods and services.
South India led the regional growth with a 7% spike, followed by north and east India with 5% and 4% rises, respectively, and West India with 4%, according to a Retailers Association of India (RAI) poll.
Each of the apparel and clothes and footwear industries had a 4% increase.
“We expect further improvement in consumer sentiment and retail sales with the upcoming festival season and a promising monsoon,” RAI CEO Kumar Rajagopalan stated.
The study demonstrated a strong performance in a number of areas, especially discretionary items, which were helped by end-of-season sales.
In both rural and urban areas, household consumption expenditure on goods and services is increasing, according to a recent survey conducted by the Ministry of Statistics.
According to the poll, after accounting for inflation, the monthly per capita household consumption in rural India increased by more than 40% in 2022–2023 when compared to the same figure recorded for 2011–12.
The country’s rural areas had a sharp increase in monthly per capita consumption expenditure from Rs 1,430 in 2011–12 to Rs 2,008 in 2022–2023.
After accounting for inflation, per capita household consumption expenditure in urban India increased to Rs 3,510 in 2022–2023 from Rs 2,360 in 2011–12. This is a strong gain of 33%.
In the meantime, compared to the same period previous year, retail startups in the nation raised 32% more money in the first half of this year.
According to data analytics provider Tracxn, investment for the retail industry climbed by 32% to $1.63 billion in the first half of 2024 from $1.23 billion in the same period in 2023.
A recent analysis from UBS claims that over the past ten years, consumption in India has nearly doubled.
India’s consumption increased last year at a quicker rate than that of other global superpowers including the US, Germany, and China.
