New Delhi, Jul 19 (IANS): As household consumption expenditure on goods and services surged with rising disposable incomes, the country saw a significant 5 per cent growth in retail sales in the month of June.
According to a survey by the Retailers Association of India (RAI), south India led the regional growth with 7 per cent spike, followed by north and east India at 5 per cent rise, respectively, and West India showing 4 per cent rise.
The footwear and apparel and clothing sectors each registered a 4 per cent growth.
“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.
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 per cent 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.
Urban India also recorded a robust gain of 33 per cent 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 per cent more funds as compared to the same period last year.
The funding for the retail sector has increased by 32 per cent 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.
Last year, consumption in India grew faster than other major economies of the world such as China, US, and Germany.