India’s Luxury Market: Growth Trends, Key Segments, and Future Potential

Is India Falling in love with luxury? The short answer is yes.

According to the data, luxury is no longer reserved for the wealthy.

India is embracing high-end fashion, watches, cars, and hotels.

The numbers speak for themselves.

In 2024, India’s luxury market grew steadily to $17.67 billion.

It is anticipated to surpass $85 billion by 2030.

India's luxury sector rose by 32.8% in FY22, ahead of the US, Switzerland, Japan, and China.

So, what's driving this boom?

The reason is increasing wealth, shifting consumer desires, and a booming premium retail space.

More individuals can now afford premium brands.

The number of Indians earning over $10,000 annually will jump from 60 million to 100 million by 2027.

By 2030, the affluent consumer segment is predicted to reach 500 million.

As disposable incomes rise, luxury spending is following suit.

Jewellery and watches are leading the way.

India's $50 billion wedding market drives more than 50% of the nation's gold jewellery sales.

The luxury watch and jewellery market alone is projected to hit $11.65 billion.) by 2025.

Local behemoths such as Tanishq, Kalyan Jewellers, and Titan's high-end brands Xylys and Nebula rule the roost.

Luxury vehicles have also become a red-hot segment.

The segment reached an all-time high of 50,000 units sold in 2024.

Companies like Mercedes-Benz, BMW, Audi, Volvo, and Jaguar Land Rover have seen their demands go through the roof.

According to the real estate advisory firm JLL India, 27 new international retail brands arrived in India in 2024 - almost twice the number from the previous year.

Beauty, cosmetics, wellness, footwear, bags, and clothing are leading the growth, creating an ecosystem for luxury retail.

Luxury tourism is also on a high.

India's luxury hotel segment is expected to increase from $2.99 billion in 2025 to $4.83 billion in 2030, with a CAGR of 10.06%.

The luxury chains of ITC Hotels, Oberoi Hotels, and The Leela are witnessing growth due to high-net-worth tourists.

Titan and Kalyan Jewellers are defining the luxury watch and jewellery segment, with aggressive plans to expand globally.

Reliance Industries, via Reliance Brands, has acquired licenses from Burberry, Armani, and other high-end players.

Tata Motors owns Jaguar Land Rover, thereby becoming a significant player in India's luxury car market.

Aditya Birla Fashion is taking Indian luxury fashion global with Sabyasachi and Abu Jani & Sandeep Khosla acquisitions.

India's high-end market is thriving, but for now, it remains an aspiration for most.

Discretionary spending makes up just 21% of household budgets, leaving little to no room for high-end indulgences.

Basic appliances like air conditioners or a fridge remain out of reach for many - only 24% of homes own an AC or cooler, and 38% have a refrigerator.

The high-end consumer market is much smaller still.

Fewer than 30 million stock accounts have more than ₹10,000, which puts into perspective just how niche luxury buyers are.

The demand is growing, but the gap between aspiration and affordability remains quite wide.

India’s appetite for luxury is expanding fast.

But for brands to grow, they need to strike a chord between exclusivity and accessibility.

The money is arriving, the demand is increasing.

The real question is - who will capitalise on India's luxury boom?