Fashion pulse: India - August 2026

Summary of India's fashion industry in August 2026, including consumer prices, retail sales, macro context, and monetary policy.

What happened

India's consumer price index (CPI) inflation rose to 4.82 percent year-on-year in August 2026 from 4.45 percent in July, according to provisional data from India's National Statistical Office (NSO). Clothing and footwear prices rose 3.56 percent YoY, up from a provisional 3.38 percent in July, and remained below headline inflation. Clothing prices rose 3.93 percent and footwear prices 1.12 percent.

Why it matters

Clothing and footwear inflation was higher in rural areas, at 4.17 percent, than in urban areas, at 2.57 percent, according to NSO. Urban footwear prices fell 0.65 percent YoY. Outside the clothing and footwear category, silver jewellery prices rose 107.11 percent and gold, diamond and platinum jewellery 35.53 percent.

Sales of apparel and clothing rose 10 percent YoY in August, up from 8 percent in July, according to an industry survey by the Retailers Association of India (RAI). Footwear sales rose 8 percent, down from 10 percent in July, while overall retail sales rose 10 percent. Deflated by the clothing CPI, apparel sales growth was roughly 6 percent in real terms.

By region, retail sales rose 11 percent in western India, 10 percent in southern India, 9 percent in northern India and 8 percent in eastern India, according to RAI. Among other categories, quick-service restaurants led with 15 percent growth, while jewellery sales rose 9 percent and beauty, wellness and personal care 8 percent.

This news brief is based on reporting published by FashionUnited on 2026-10-06. The original report is linked below.