India retail growth cools to 5% in May as inflation bites; apparel matches pace
RAI's Round 71 Business Survey shows retail sales growth moderated to 5% YoY in May 2026 from 7% in April. Apparel grew 5%, signaling a broad-based consumer spending slowdown amid inflation and global uncertainty.
What happened
Retailers Association of India (RAI) · RAI's Round 71 Business Survey shows India retail sales growth moderated to 5% YoY in May 2026 from 7% in April, citing
Key facts
- 5% YoY retail growth May 2026
- 7% April growth
- 5% apparel growth
- Round 71 RAI Business Survey
Why this matters
A consumer spending slowdown plus inflation pressure could compress valuations on apparel and mid-market retail targets—revisit pipeline pricing and stress-test deal models against a sustained 5% growth regime.