India’s luxury goods market is poised for a major leap in 2025, expected to cross the $12 billion mark, according to recent industry reports and the NSE circular update. This growth is primarily driven by an expanding affluent population, increasing urbanisation, and changing consumer preferences favoring both premium products and luxury experiences such as hotels, travel, and fine dining.
India’s luxury goods market is poised for a major leap in 2025, expected to cross the $12 billion mark, according to recent industry reports and the NSE circular update. This growth is primarily driven by an expanding affluent population, increasing urbanisation, and changing consumer preferences favoring both premium products and luxury experiences such as hotels, travel, and fine dining.
Notably, the luxury automobile segment, including premium and electric cars, has seen remarkable value sales growth thanks to attractive financing schemes and an expanding urban luxury consumer base. As younger, globally minded buyers gravitate toward experiential luxury and wellness lifestyles, the traditional notion of luxury is evolving rapidly.
Global luxury brands are also ramping up their presence and local manufacturing capabilities in India. Meanwhile, the market is expanding beyond metropolitan hubs into tier 2 and 3 cities, signaling a broadening base for luxury consumption nationwide. The renewed preference for in-store shopping is evident, with brands transforming physical outlets into immersive cultural and emotional engagement spaces.
This momentum reinforces India’s position as a critical growth hub within the global luxury ecosystem, with demand driven by both traditional luxury consumers and a younger, experience-oriented clientele.
Sources: NSE Circular 2025, Euromonitor International, Economic Times, IBef, Business Today, Firstpost