Why India Is the Best Market for Luxury Now

India is rapidly emerging as the world’s most promising luxury market, fuelled by an unprecedented rise in wealth, evolving consumer aspirations, and increased global exposure. With its unique combination of cultural richness and modern ambition, India offers unparalleled opportunities for luxury brands to thrive. Let’s explore why India is positioned as the ideal luxury destination of today and tomorrow.

Rising Millionaires and Billionaires

India’s growing affluence is rewriting the rules of the luxury market. The country adds more than 7,000 new millionaires annually, supported by a surge in billionaires and high-net-worth individuals (HNWIs). This has fuelled a luxury goods market currently valued at $7 billion, with projections to grow to $30 billion by 2030, according to a Deloitte report.

The younger generations, characterized by their higher purchasing power and preference for experiential and branded luxury, are the key drivers of this growth. They seek products that reflect their values, aspirations, and global outlook, making India a fertile ground for luxury brands looking to establish long-term loyalty.

India’s Expanding Global Luxury Exposure

India’s heightened global exposure has transformed consumer preferences, particularly in urban centers and affluent circles. Over the past three years, more than 50 international luxury brands have entered the Indian market, spanning categories such as fashion, travel, leisure, and gourmet foods.

The rising global engagement is evident in India's growing appetite for international luxury. For instance, in 2023, India imported Swiss watches worth USD 252 million, marking a 39% increase from 2021. This indicates a robust demand for high-end luxury goods that embody craftsmanship and status.

Pan-India Luxury Consumption: Beyond Metros to Tier-II Cities

Luxury consumption in India is no longer limited to metro cities like Mumbai and Delhi. Tier II cities such as Chandigarh, Ahmedabad, and Pune are witnessing annual growth rates of 15-20% in luxury spending. Recognizing this potential, global brands like Louis Vuitton and Gucci are expanding their presence in these emerging markets.

The overall luxury market is projected to grow at 10-15% annually, with the soft luxury segment (apparel, accessories, and leather goods) expected to reach 23 to 38 billion euros by 2030, according to Barclays. This nationwide trend underscores India’s dynamic market, where the demand for both functional and aspirational luxury continues to rise.

Aspirational Spending: The Influence of DINKs and Tier 2 Affluence

Aspirational spending in India is evolving rapidly, driven by dual-income households with no kids (DINKs) and affluent families from the upcoming Tier II cities. These segments are growing at 30% annually, reshaping luxury consumption patterns.

Interest fuelled 42% of rural nuclear families now embrace a lifestyle of aspirational spending, compared to 22% of urban families, reflecting a shift in consumer priorities across demographics. Social media, global travel, and the increasing accessibility of luxury goods have further fueled this transformation, with Indian consumers more eager than ever to invest in products that signal status and sophistication.

A Transformative Luxury Landscape

India’s luxury market is not just about wealth; it is a reflection of evolving consumer behavior, aspirations, and a burgeoning global outlook. With a blend of ancient traditions and modern influences, India offers luxury brands a chance to craft unique narratives that resonate deeply with its discerning audience.

As the market grows, so does its complexity—brands must cater to a younger, globally savvy demographic while embracing the cultural richness that makes Indian consumers unique. The rise of Tier-II cities, aspirational spending, and digital engagement presents a golden opportunity for luxury brands to establish themselves in one of the world’s most exciting markets.

The Future of Luxury is India

India’s ascent as a luxury market is underpinned by strong fundamentals—rising wealth, international exposure, and dynamic consumer behavior. With projections pointing to exponential growth across segments, the time is ripe for global and homegrown luxury brands to make India their priority market.

For brands seeking to create an indelible impact, India is not just an opportunity—it is the future.