What: India’s luxury market is projected to grow by 10% in 2025, driven by rising affluence, evolving consumer preferences, and increased international brand activity.

Why it is important: The sector’s transformation reflects broader shifts in global luxury retail, with India poised to influence both domestic and international market dynamics.

India’s luxury market is on a strong growth trajectory, with a projected 10% increase in 2025, according to Euromonitor. This expansion is fueled by rising affluence, rapid urbanisation, and a shift in consumer preferences, which are drawing both international and domestic brands to the market. The influx of 27 new foreign retail brands in 2024 nearly doubled the previous year’s entries, highlighting India’s growing appeal as a global luxury destination. Notably, luxury consumption is spreading beyond metropolitan centers, with a significant portion of consumers now located in smaller cities, prompting brands to adopt integrated physical and digital strategies. The country’s ultra-high-net-worth population is expanding, and Indian tourists are expected to spend $89 billion globally within three years, further amplifying India’s influence on the international luxury landscape. As brands like Bvlgari pivot their focus from China to India, the market’s strategic importance is underscored, signaling a new era for luxury retail both within India and on the global stage.

IADS Notes: India Economic Times (October 2025) reports a 10% growth projection for India’s luxury market, driven by affluence and urbanisation. In February 2025, the same source highlighted the entry of 27 new international brands, while Vogue Business (March 2025) noted 43% of luxury consumers are outside metro cities and Barclays projects 15-25% annual growth through 2030. ET Retail (December 2024) discussed Bulgari’s strategic shift to India, and Inside Retail (November 2024) emphasised the global impact of Indian tourists’ luxury spending.

India’s luxury market set for 10% growth in 2025: Euromonitor International