Luxe & Loaded: How India is Capturing the Global Luxury Market

 “Luxury is the necessity that begins where necessity ends.” – Coco Chanel

This quote may not have made much sense to us Indians in the early 2000s, but right now, the country is on its way to being dubbed as the next luxury hub of the world, taking over China.

Surprising? Not really. Major global luxury brands are knocking on India’s doors to expand. Dior, Bulgari/ Bvlgari, and Louis Vuitton are now adopting the “Glocal” approach or “desi-inspired designs” to expand their collection here, especially in the fashion and apparel sections. Big Indian conglomerates like Reliance Industries and Aditya Birla are supporting such brands to showcase in India and highlight the growing luxury market.

Thus, with a booming economy, a rising middle class with an appetite for the finer things (driven by Gen Z and millennials), and a pinch of the FoMo factor, the luxury market is on the right foot and set for an unprecedented surge.

Let’s dive deeper.

India’s Luxe Revolution

India’s rise comes when the global luxury sector is facing a slowdown in traditional markets like China, Europe, and the USA. Real estate consultancy JLL India recently revealed a staggering statistic: 27 new foreign retail brands entered India in 2024—nearly double the number from the previous year. That’s big! The numbers back it up, too—as per Statista, India’s luxury goods market amounted to $17.67 billion in 2024 and is poised to grow annually by 3.17% (CAGR 2024-2029). Management consulting firm Bain & Co. predicts India’s luxury market is set to skyrocket past $85 billion by 2030, bolstered by the country’s economic growth and discretionary spending habit, hinting at greater opportunity and growth. 

“Luxury retailers continue to show a keen interest in expanding their footprint in India, primarily within the fashion and apparel segment, which accounted for nearly half of the total luxury space leased during the year”: JLL

Trends in Luxury Spending 

The global luxury industry has nine significant segments, with luxury cars, luxury hospitality, and personal luxury goods comprising over 80% of the market. Statista reports that India’s largest segment is luxury watches and jewellery, which will have a volume of $11.65 billion in 2025. 

India is primarily a consumer-demand-driven economy, with private consumption accounting for above 60% of GDP. That said, as incomes rise and technology expands access, consumer behaviour constantly shifts towards premium and digital experiences, leading to the trend called ‘premiumisation of consumption.’ 

Similar to the surge in demand witnessed in China during the early 1980s, India is currently experiencing a notable uptick in the desire for luxury goods. A Goldman Sachs 2024 report on ‘India’s affluent population’ highlights the rapid growth in the wealth of affluent Indians and that this will increase from around 60 million in 2023 to 100 million people by 2027, or even more.  

What is Fuelling the Growth?

1. More Money =More Spending

Wealth levels are rising, and many high-income taxpayers are driving the luxury market. Further, the tax relief announced in the Union Budget 2025 benefits the middle class. It increases disposable income, further fuelling demand across essential and aspirational categories—from designer bags to swanky cars and bespoke experiences.

2. The Middle-class Boom

The so-called “mass affluent” are no longer just observing luxury from afar. A report by People Research on India’s Consumer Economy (PRICE) and India’s Citizen Environment, a not-for-profit think tank, earlier quoted that by 2047, India’s middle class is expected to constitute 61% of the total population. The rich will grow from 0.5% in 2004-05 to 26% by 2047, significantly widening the pool of potential luxury consumers.

So, with evolving consumer preferences, the luxury landscape in India continues to expand. Let’s move to the next segment.

Sectors to Watch

Bling it On!

In 2024, India’s luxury jewellery and watch sectors experienced significant growth. According to Deloitte, the jewellery sector glittered at $80–$85 billion in FY24 and is set to rise to $225–$245 billion by FY35—thanks to rising disposable incomes, evolving tastes, and strategic market expansions. Meanwhile, India’s luxury retail market, valued at $8 billion, is expected to grow to $14 billion by 2032.

Luxury watches are ticking up fast! Watchmakers are increasingly focusing on India as a key market, driven by Gen Z and millennials who prioritise luxury experiences and products. Swiss luxury watchmaker IWC Schaffhausen recently opened its first boutique in India, at Jio Mall in Mumbai. Then Breitling launched boutiques in Chennai and Pune, having opened its first Indian store in Hyderabad in 2023. 

And here’s a fun fact: A Deloitte survey shows 78% of Indian consumers plan to buy a watch this year! The demand for luxury jewellery and watches continues to grow steadily.

Luxury on Wheels: The Rise of Premium Cars

The phenomenon of “premiumisation” extends beyond jewellery and watches to automobiles, where manufacturers are witnessing a surge in demand for high-end features such as advanced safety systems and vehicle comfort-enhancing technologies.

It’s not just designer labels and five-star vacations anymore. India’s love affair with luxury cars is also in full swing. Mercedes-Benz and BMW are smashing sales records, especially in smaller cities where aspirational buyers are stepping up. 

In fact, according to the Autocar report, India’s luxury car market hit an all-time high of 50,000 units for the first time in 2024. The demand for luxury cars in India is no longer limited to a niche audience. Once a rare sight on Indian roads, brands like Mercedes-Benz, BMW, Audi, Volvo, and Jaguar Land Rover (JLR) have grown substantially due to increasing demand.

Even more enjoyable is the growing demand for premium electric vehicles (EVs) among the ‘eco-conscious elite’.

According to a statement from BMW Group India, the i7 was the largest-selling EV in its class, with 384 units sold. The company added that it has also delivered 3,000 EVs till January 2025, becoming the first luxury car manufacturer in the country to reach this milestone. The BMW iX is India’s most popular luxury EV, with over 1,100 units sold.

The E-commerce Surge

Platforms like Tata Cliq Luxury, Nykaa and Ajio Luxe are making high-end brands available beyond Delhi, Mumbai, Bangalore and other metro cities. Tier-2 and Tier-3 cities are fuelling the next wave of demand as online platforms remove accessibility barriers for luxury shopping.

And the spending habits? In data compiled by Tata CLiQ Luxury, 2024 saw customers on its platform making single purchases of a watch worth ₹30,00,000, a designer label as high as ₹2,50,000, and jewellery pieces to the tune of ₹6,00,000 and above, proving that the online luxury space in India is as much about high-value purchases as it is about convenience.

Here’s a snapshot: 

Where is the Luxury Consumer From?

Future Outlook: Where’s the Money Flowing?

India’s surging luxury sector presents substantial investment opportunities. Global brands are setting up shop, and real estate developers are capitalising on the demand for premium commercial spaces. 

In a nutshell: 

–Indian consumer spending on luxury goods is forecast to reach $32 billion by 2030

–The luxury market’s consumer base may expand to 500 million by 2030

–Operational retail stock will likely jump 45% to 132 million sq ft in the next four years

The market is ripe for partnerships between foreign luxury retailers and Indian companies, which would ensure that global opulence gets a local twist. So, whether it’s high-end fashion, luxury automobiles, or premium real estate, the future is glamorous, and distinctly Indian.