The industry body has also appealed to major oil marketing companies, including Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum, to maintain adequate commercial LPG allocation for food service businesses.

The appeal comes after communications from oil marketing companies indicated that LPG supplies are currently being prioritised for domestic consumers due to geopolitical disruptions impacting global fuel supply chains. While the retail body acknowledged the importance of safeguarding household energy security, it noted that the restrictions are creating operational challenges for restaurants and commercial kitchens that rely heavily on LPG for daily cooking operations.

According to RAI, the restaurant and food service sector plays a critical role in India’s urban food ecosystem, serving millions of consumers every day. These establishments provide meals to hospital staff, students in hostels, industrial workers, office employees, travellers, and customers using food delivery platforms.

The association warned that prolonged disruption in commercial LPG supply could lead to temporary closure of restaurants and commercial kitchens, interruptions in food services for hospitals and institutions, employment losses across the hospitality ecosystem, and operational stress for small and medium food businesses.

To mitigate the situation, RAI has requested the government to consider a minimum assured allocation of commercial LPG cylinders for restaurants and food service establishments, particularly those serving institutional needs such as hospitals, educational institutions, industrial facilities, and transportation hubs.

The association has also proposed establishing a structured coordination mechanism between industry bodies and oil marketing companies to address supply challenges during the current period of global fuel disruption.

“A prolonged disruption in LPG supply to restaurants and commercial kitchens could lead to the non-availability of food for millions of citizens who rely on these establishments for their daily meals, including students in hostels, individuals without adequate housing, and busy working professionals. Restaurants and food service businesses are integral to India’s daily food supply chain. Ensuring continuity of LPG supply will help maintain food availability while safeguarding livelihoods across the sector. At the same time, policy support such as GST exemptions and incentives on electric commercial cooking equipment, along with the promotion of bio-LPG and other alternative fuels, can help the sector transition toward more resilient and sustainable energy sources,” said Kumar Rajagopalan, CEO of the Retailers Association of India.

RAI added that it is willing to work closely with the government and industry stakeholders to identify practical solutions, including medium-term transitions to alternative energy sources such as piped natural gas and energy-efficient commercial cooking technologies, to ensure stability across India’s retail and food service sectors.

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The partnership will focus on developing practical learning opportunities for students, creating specialised executive education modules, and enabling faculty-industry exchanges. It will also give IIM Sambalpur access to RAI’s wide retail network, helping students engage directly with emerging business models, technologies, and policy conversations shaping India’s $1-trillion retail sector.

Under the MoU, RAI will extend academic membership to IIM Sambalpur, facilitate participation in key industry events such as the Retail Leadership Summit, ReTechCon, and the Retail HR Tech Summit, and co-create short-term certification and executive education programmes. IIM Sambalpur will, in turn, contribute its academic expertise, research insights, and thought leadership to these initiatives.

Prof. Mahadeo Jaiswal, Director, IIM Sambalpur, said, “At IIM Sambalpur, we believe that management education must stay rooted in real-world practice. Our partnership with the Retailers Association of India brings that philosophy to life, combining academic rigour with industry insight. Together, we aim to build the next generation of retail leaders who are innovative, responsible, and ready to navigate a rapidly evolving consumer landscape. This collaboration aligns with our
mission to nurture responsible leaders with an entrepreneurial mindset and reflects our core values of innovation, integrity, and inclusiveness.”

Kumar Rajagopalan, Chief Executive Officer, Retailers Association of India, said, “Retail in India is at a defining moment, growing rapidly, embracing technology, and
creating new formats every day. Through this partnership with IIM Sambalpur, RAI continues its mission to bridge industry and academia, ensuring that future leaders are equipped with the skills, exposure, and mindset needed to shape modern retail. This collaboration is not just about education, but about co-creating pathways that strengthen India’s retail ecosystem and make it future-ready.”

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The latest survey findings come at a time when the retail sector is closely watching upcoming  policy changes and gearing up for the festive season, which historically drives the largest  share of annual sales. Retailers are balancing optimism around steady consumer sentiment  with a degree of caution, given evolving tax structures, global uncertainties, and changing  consumption patterns. 

Quick Service Restaurants (QSRs) led the growth charts with double-digit expansion  in July, underlining India’s rising preference for eating out and on-the-go dining. Apparel, jewellery, sporting goods and furniture each grew by 9% year-on-year, pointing to  resilient discretionary spending. In comparison, footwear and beauty & wellness clocked 5%  growth, while Consumer Durables & IT saw 6%. 

“Retail sales in July 2025 grew 8% year-on-year. For the past three months, growth has held  steady at 7–8%, which is higher than what we were seeing at the start of the year. This suggests  that consumers are spending a little more on discretionary products, and retailers will be  watching closely to see if this continues through the festive season. Global uncertainties remain  a factor, and GST reforms are still under discussion, so their impact is yet to be seen. The  industry is moving ahead with cautious optimism.” said Kumar Rajagopalan, CEO, RAI. 

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“Retail sales grew by 7% in May and 8% in June, following nearly a year of 4–5% year-on-year growth. The festive season begins at the end of August, which may influence how demand evolves. Retailers have a sharp focus on the way consumers are buying non-discretionary goods. Non-discretionary spending creates hope for the consumption market.”, said Kumar Rajagopalan, CEO, RAI. Regional data shows that West India recorded the highest year-on-year growth at 10%. North India recorded a 9% rise followed by South and East India showing a growth of 7% and 4% respectively.

Among categories, apparels and sport goods led with 10% growth each, while consumer durables & electronics (CDIT); jewellery and QSR grew by 9% each.

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“After several months of moderate growth of around 4 to 5%, retail businesses are beginning to show signs of accelerated growth, with sales in May 2025 growing 7% compared to the same period last year. This uptick suggests improving consumer sentiment, particularly in discretionary categories. The outlook for the upcoming festive season appears optimistic.”, said Kumar Rajagopalan, CEO, Retailers Association of India (RAI).

Regional data shows that South India recorded the highest year-on-year growth at 9%. West India recorded a 7% rise followed by North and East India showing a growth of 6% and 4% respectively.

Among categories, QSR (Quick Service Restaurants) led with 10% growth, while consumer durables & electronics (CDIT) and furniture grew by 8% each.

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Bringing together retail professionals and thought leaders from across the seven North-Eastern states—Arunachal Pradesh, Assam, Nagaland, Manipur, Meghalaya, Tripura, and Mizoram—the summit focused on building a cohesive ecosystem to address region-specific challenges and tap into emerging opportunities.

Kumar Rajagopalan, CEO, Retailers Association of India, remarked, “Northeast India is a very interesting market for the retail industry. The customers in that part of the country are very well aware of the global trends, are accustomed to multiple languages, and are willing to experiment with items when they get them. However, the logistics and the supply chain can sometimes be hindered thanks to various political situations. We believe that it creates a great opportunity for retailers who want to be there, work with the various service providers and ensure that they are able to provide a seamless experience for customers in the Northeast. Northeast is also a great place to find exceptional people who can serve in the retail industry, and that is a great opportunity and we believe that employment, which is one of the key drivers for retail, can be fulfilled with access to the Northeast part of the country.”

The 2025 edition of the summit featured an esteemed line-up of speakers, who deliberated on topics such as Marketing That Works: Tools, Tactics, and Trust; Business Strategy to Drive Real Outcomes in Today’s Scenario; and Local and Thriving — What Retail in the Northeast Looks Like Today. Retail leaders from the region speaking at the summit included, Vikram Bothra – Chandan Retail (Askaran Binjraj); Kunal Mordani – Tanishkaa Retails; Raja Gohain, Director, MG Solutions (Times Square); Manish Jain- Gangwal Furniture; Subhash Soni – MNJ, Manik Chand Nand Kishore Jewellers; and Gaurav Sureka – Maa Kamakhya Retails, Shop N Save; to name a few.

Vikram Bothra, MD & CEO, Chandan Retail (Askaran Binjraj); Chairman, RAI Northeast Chapter, said, “The true retail story in the Northeast is on the ground, driven by local entrepreneurs. We’ve seen incomes rising and communities are more open to modern retail, but success here takes time. Patience and commitment are essential – brands must earn trust by adapting to local tastes and persisting through the slow build. Our experience shows that targeted strategies resonating with regional culture pay off. Yes, infrastructure and market fragmentation are real challenges, but if retailers stick with it and partner with local players, the rewards will come. I strongly believe the next five years of retail would belong to Assam and the Northeast. When companies are patient and collaborate with those on the ground, even logistical hurdles become surmountable.”

Raja Gohain, Director, MG Solutions (Times Square), said, “We are blending national retail practices with local consumer patterns. We bring national best practices like efficient supply chains and digital payment systems, but we adapt them to local tastes and customs. Digital transformation is changing how Northeast India shops: more consumers are online or using mobile wallets, so we are building a robust e‑commerce and tech support to serve them. At the same time, we honour regional preferences – from festival assortments to local languages in stores. In essence, we merge scale with personalization. By applying nationwide efficiency while staying sensitive to local nuances, we can foster growth in the region.”

Kunal Mordani, Director, Tanishkaa Retails, said, “Northeast consumers are evolving fast. They have rising disposable incomes and now expect the same quality and convenience as shoppers elsewhere. This means we must adapt our operations – investing in technology, optimizing our supply chains, and tailoring assortments for local tastes. For example, the growth of quick commerce is helping us meet demand in remote areas. We’re using data analytics to forecast demand across diverse geographies and aligning inventory to festivals and seasons unique to the region. By staying flexible and customer-centric, we can win in this challenging but high-potential market.”

As the North-East continues to evolve as a promising retail frontier, NERS 2025 has further cemented its place as a catalyst for industry growth, partnership-building, and regional development. The summit was co-powered by Infinity, Go Beyond and the Gold Partner was Askaran Binjraj. The Retailers Association of Assam was the Ecosystem Partner, TRRAIN was Charity Partner, Storai was Magazine Partner and Replenish was Digital Marketing Partner.

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“Retail performance in India shows a modest 4% year-on-year gain for February 2025. Categories such as food and grocery, QSR, and consumer durables have reported specific upticks. Retailers are increasingly focused on protecting margins, with improved stock management becoming a clear priority. In the context of global tariff shifts and economic uncertainty, the sector is showing signs of steady adjustment rather than expansion,” said, RAI CEO Kumar Rajagopalan.

The survey further reveals that North India experienced the highest sales growth at 5%, while West India recorded a 4% increase followed by South India at 3%. East India showed a growth of only 2%. In terms of categories, Food & grocery registered the highest growth of 11%, followed by consumer
durables and QSR each showing growth of 5% compared to February 2024 period last year.

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Kumar Rajagopalan, CEO, Retailers Association of India (RAI) said, “India’s discretionary spending is entering a new phase of growth, driven by rising incomes, digital adoption and evolving consumer preferences. This joint report by RAI and Deloitte provides a roadmap for brands to navigate these shifts andcreate meaningful engagement with today’s aspirational consumers. As organised retail and new commercemodels expand, businesses that align with these trends will unlock immense opportunities for growth and innovation.”

Key drivers of India’s consumer boom

By 2030, the number of Indians earning over US$10,000 annually is expected to nearly triple, increasing from 60 million in 2024 to 165 million. This reflects the significant growth of the country’s middle class and a fundamental shift towards discretionary spending. Several key forces are driving this consumption boom:

·      Premiumisation and evolving consumer preferences: With rising afluence, consumers prioritise quality, convenience and experiences over price. Gen Z and millennials, who account for 52 percent of the population, drive this shift, driving demand for premium brands, sustainable products, andpersonalised experiences.

·      Digital and financial inclusion driving spending: Credit access is expanding at an unprecedentedpace, with credit card penetration set to triple from 102 million in 2024 to 296 million by 2030, enabling increased consumer spending. Fintech solutions and digital payments such as UPI are reshaping how consumers engage with brands, boosting e-commerce adoption and fuelling a new wave of digital-first consumption.

·      Shift in household spending patterns: As disposable incomes rise, essential spending on food has declined—rural food expenditure has dropped from 60 percent to 47 percent, and urban foodexpenditure has declined from 48 percent to 40 percent. This reflects a growing inclination towards dining out, travel, wellness, and other discretionary categories such as fashion, fitness, home improvement, and consumer durables.

·      Rise of organised retail and experience-led consumption: Organised retail is expanding rapidly,registering a 10 percent CAGR. It is expected to reach US$230 billion by 2030. Consumers are increasingly drawn to experience-led retail spaces, omnichannel shopping and hyper-personalised services, pushing brands to rethink engagement strategies.

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Retail sales in India witnessed a 5% increase in January 2025 compared to the same month last year, according to the latest Retail Business Survey by the Retailers Association of India (RAI).

Among regions, West India recorded the highest growth at 7%, while North and South India each saw a 5% rise. East India lagged slightly behind, reporting 4% growth.

Kumar Rajagopalan, CEO, RAI, highlighted that the retail sector’s recovery was primarily driven by the food & grocery category, which grew by 13%. He noted that the Union Budget 2025’s income tax exemption limit of ₹12 lakh has provided much-needed relief to retailers following last year’s slowdown.

“Consumer preferences continue to evolve, requiring retailers to adapt swiftly and refine their operational strategies to remain competitive,” Rajagopalan added.

Category-Wise Performance

• Food & grocery led the sectoral growth with a 13% surge.
• Consumer durables and quick service restaurants (QSRs) registered 6% growth each, reflecting increased consumer spending.
• Apparel and footwear saw a 4% rise, while jewelry grew by 3%.
• Beauty & wellness and sporting goods recorded 2% growth, whereas furniture and furnishing posted the lowest increase at 1%.

As the apex body of retailers in India, RAI continues to collaborate with industry stakeholders to foster a conducive environment for the modern retail sector’s expansion.

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“RAI’s survey indicates a moderate growth of 7% during the October-November festive season, falling short of the anticipated 10%. Consumption growth has been subdued throughout the year, prompting retailers to boost business through promotional offers and encouraging festive purchases. We are hopeful for stronger growth in 2025, as rising operational costs require a sustained growth trajectory to maintain profitability. Inflation, intensified competition, and limited spending, particularly by the lower middle-class population, remain significant challenges,” said Kumar Rajagopalan, CEO, Retailers Association of India (RAI).

The survey further reveals that West India experienced the highest sales growth at 8%, while North, South, and East India each recorded a 7% increase.

In terms of categories, food and grocery registered the highest growth of 14%, followed by 10% in QSR and 9% in jewellery compared to the same festive time period last year.

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