The India luxury market is poised to reach $12.1 billion by the end of 2025, marking a roughly 10% growth rate over the year, according to a report by Euromonitor International. This performance places India among the fastest-growing luxury markets globally, alongside countries like South Africa (15%) and the United Arab Emirates (9%).
This growth reflects a broader shift in the Indian high-end consumer landscape: from purely product purchases toward lifestyle and experiences, rising disposable incomes, and an expanding affluent class.
What’s driving the India luxury market growth?
Rising affluence and aspiration
Urbanisation, a growing upper-middle and high-income segment, and greater global exposure are fueling demand for luxury goods in India. The Euromonitor report highlights that the increasing number of wealthy individuals is a key factor. The Economic Times
Shift toward experiences
The India luxury market is not just about handbags and watches. Segments like experiential luxury (luxury travel, fine dining, bespoke events) are growing rapidly. In fact, physical luxury goods still dominate—but the narrative is shifting.
Premium cars and mobility
Premium and luxury cars are cited as leading value-sales segments, supported by urbanisation, attractive financing, and new electric models.
Retail reinvention
Even though e-commerce is on the rise, 81% of personal luxury goods sales in India were still through physical stores in 2025. That shows how luxury shopping remains as much about experience and service as product.
Market segmentation: Winners and opportunities
- Luxury cars & mobility: As noted, this is one of the strongest segments in India’s luxury growth story.
- Soft luxury goods (fashion, bags, accessories): These remain important, though some forecasts suggest slower growth in certain “soft” categories compared to hard luxury (watches, jewellery).
- Experiential luxury: Travel, hospitality, wellness, bespoke services—these are gaining traction as status symbols.
- Retail footprint & omni-channel: Brands are investing in flagship stores, immersive retail spaces, and blending online/offline channels to capture India’s affluent consumers.
Strategic implications for brands & retailers
Localising premium
International luxury brands need to adapt for India’s unique market dynamics—cultural, regional, income distribution and digital behaviour. The India luxury market growth suggests localisation matters.
Experience beats product
Given the shift toward experience, brands should emphasise storytelling, in-store luxury experiences, concierge services, and immersive retail rather than purely transactional models.
Tier-2 & Tier-3 cities matter
While metros (Mumbai, Delhi, Bengaluru) still dominate luxury retail, the aspirational class in smaller cities is growing. Brands should eye expansion beyond the traditional hubs.
Digital + physical synergy
Given that physical stores account for a large share of sales, but digital awareness and engagement are rising, brands should ensure seamless omni-channel integration—luxury consumers in India expect both.
Risks and headwinds to watch
- High base challenges: A 10% growth is strong, but sustaining it will require continuous innovation and investment.
- Income disparity: India’s per-capita income is still lower versus some major luxury markets—brands must balance aspirational pricing with local affordability.
- Retail infrastructure & real estate: Premium retail spaces and luxury malls are expensive; brands must ensure store economics are viable.
- Global macro risks: Luxury markets are sensitive to global economic and geopolitical shocks; India is not insulated.
Why the $12.1 billion figure matters
That headline number—$12.1 billion—is significant because it signals that India is moving from a niche luxury market to a meaningful player in the global luxury ecosystem. FashionUnited
For brand strategists, investors, retailers and market watchers, this means:
- India is not just a future story—it’s current momentum.
- The next tranche of luxury growth is likely to come from emerging markets like India, not just from established Western ones.
- Companies who move early (in store build-out, partnerships, localisation) may reap outsized benefits.
What this means for you (the reader)
If you’re in business, marketing, investment or even luxury retail in India, here’s what to keep in mind:
- For brands: Align with India’s growth story—invest in consumer insights, store experiences, localised offerings.
- For retailers and investors: The India luxury market is a growth frontier—evaluate real estate, brand partnerships, consumer segmentation.
- For consumers: Expect greater access to global luxury brands, elevated premium retail experiences, and more choices in cities beyond just the usual metro hubs.
Conclusion: A moment of opportunity
The India luxury market’s projected rise to $12.1 billion by end of 2025 marks a pivotal moment. With rising wealth, changing consumer priorities and brands investing deeply in India, the landscape is shifting. But the story is not just about money—it’s about how luxury is being consumed in India today: experience-led, aspirational, digitally attuned and regionally broadening. For brands, retailers and consumers alike, this is a moment to act.
