India witnesses a notable surge in retail sales
According to the Retailers Association of India (RAI), India saw a significant 5 percent growth in retail sales in the month of June, as household consumption expenditure on goods and services surged with rising disposable incomes.
South India led the regional growth with a 7 percent spike, followed by north and east India at a 5 percent rise, respectively, and west India showing a 4 percent rise.
The footwear apparel and clothing sectors each registered a 4 percent growth.
According to a recent survey by the Ministry of Statistics, household consumption expenditure on goods and services is rising in both rural and urban areas.
The monthly per capita household consumption in rural India jumped by over 40 percent in 2022-23, after adjusting for inflation, compared to the corresponding figure recorded for 2011-12, according to the survey.
In absolute terms, the monthly per capita consumption expenditure in the country’s rural areas shot up to Rs.2,008 in 2022-23 from Rs.1,430 in 2011-12.
“With the upcoming festival season and a promising monsoon, we anticipate further improvement in consumer sentiment and retail sales,” said Kumar Rajagopalan, CEO of RAI.
The report showed a robust performance across various sectors, particularly in discretionary items, boosted by end-of-season sales.
Urban India also recorded a robust gain of 33 percent with per capita household consumption expenditure rising to Rs.3,510 in 2022-23 from Rs.2,360 in 2011-12, after adjusting for inflation.
Meanwhile, in the first half of this year, retail startups in the country raised 32 percent more funds as compared to the same period last year.
The funding for the retail sector has increased by 32 percent to $1.63 billion in the first half of 2024, which was $1.23 billion in the first half of 2023, according to data intelligence firm Tracxn. According to a recent UBS report, consumption in India has almost doubled in the last decade.
For all the latest updates, download PGurus App.
