How India's luxury market is becoming a stellar example of exponential growth

As India marches on, becoming one of the most exciting economies to watch out for thanks to its demographic advantage and growth momentum, its luxury segment is proving to be one example of scorching growth. Ever since the pandemic subsided, Indians have come out in droves, with revenge shopping initially, and then backing it up subsequently with some serious spending on luxury goods and experiences. Not surprisingly, various estimates peg India’s luxury market to grow rapidly over the next few years, as global brands make a beeline for Indians’ wallets and the country’s luxury brands capture the imagination of the world.

Consider this: Euromonitor International projects India’s luxury market to grow to a hefty Rs 82,186 crore by 2027, up from Rs 53,561 crore in 2022. A Bain & Company report points to the growth potential, saying that India’s luxury market could expand to 3.5 times its current size by 2030, “propelled by younger customers and an expanding upper and middle class”. Indeed, the rising number of Indian rich is one of the crucial factors driving the craze for luxury goods. According to a report by Credit Suisse and UBS, India is projected to see a 69 per cent growth in the number of millionaires between 2022 and 2027, compared to a 45 per cent rise globally. Clearly, India is the new destination for luxury. So whether it is luxury cars, personal luxury items like watches and jewellery, or experiential luxury, Indians seem to be tuning in to the ‘have money, will splurge’ theme.

In our Luxury special issue this year, we delve deeper into various aspects of this theme, slicing and dicing the trends in the luxury space. We also capture the growing trend of the internationalisation of the Indian luxury market. While the biggest global brands are increasingly looking at India and appointing top celebrities as their brand ambassadors—read Deepika Padukone for Louis Vuitton, Alia Bhatt for Gucci and Katrina Kaif for Rado, among others—some of the most celebrated designers from India, like Sabyasachi Mukherjee (whose story you will read in this issue), are going global and setting up stores in cities like New York. As Smita Tripathi, who helmed this Luxury special, writes: “From Sabyasachi Mukherjee opening a store in New York to Dior holding a landmark Pre-Fall show in Mumbai in March 2023, it’s truly a case of Indian luxe, global flex.”

In line with these growth trends, Surabhi also brings you the details of the latest BT-C Fore Business Confidence Index. The index shows business confidence in the corner offices of India Inc., despite the global economic headwinds and the Israel-Hamas war, is at a six-quarter high in the second quarter of FY24. The outlook for the third quarter, barring inflation fears, is also largely optimistic. That’s something to cheer about this festive season.