India’s festive online retail to be strongest in 5 years: Report

India’s festive online retail is set for its strongest growth in five years, consulting firm Redseer said in its latest report. It projects 25 per cent growth during the 30–35-day period running up to Diwali, compared to 16 per cent last year.

What’s interesting is that while electronics has traditionally steered the festive growth, buoyed by new launches, steep discounts and offers, growth this year is set to be driven by other categories, viz. grocery, beauty and personal care (BPC) and fashion.

Grocery is set to grow 48–50 per cent, BPC 35–40 per cent, home and furniture 32–35 per cent, and fashion 20–22 per cent. Electronics is expected to grow 15–17 per cent.

Meanwhile, online retail is set to grow 21–25 per cent in H2 2027.

Strongest H1 in four years

In the first half of FY 2026-2027, corresponding to the months of April-September, online retail grew 25 per cent YoY, translating into the strongest H1 in four years. Every major category grew in this period compared to last year.

The growth was mainly driven by an electronics rebound due to the GST cut, demand in tier 2+ cities, growth in quick commerce, and Gen Z moving to the core growth strategy.

Interestingly, it has pulled users from offline retail rather than reshuffling within online, and has created demand that didn’t exist before, such as impulsive snacking.

The growth seen in H1 2027 is now projected to continue in H2 2027 at 21-25 per cent. As a result, online retail is set to reach $90 billion in calendar year 2026, growing fastest in 5 years.