Retail Demand Fuels India’s 6.8% Sales Growth as FMCG Volumes Rebound

India’s retail sector expanded by 6.8% in Q2FY26, supported by strong demand across urban and rural markets. FMCG volumes surged 13.9%, reflecting robust consumption during the festive season. Retailers reported double-digit growth in food and personal care categories, while discretionary segments remained steady. Analysts say inflation moderation and rising disposable incomes are driving sustained purchasing activity. The sector’s recovery highlights broader economic resilience, with organized retail penetration crossing 12% for the first time. Industry leaders project continued strength into FY26 if rural demand remains stable.