Velvet Revolution Or Mirage: Is India Weaving The World’s Next Luxury Story?

Market Context  
India’s luxury sector, once niche, is now expanding rapidly across metros and tier-two cities. According to Kearney, the market stood at $7.74 billion in 2023 and is expected to grow at a CAGR of 10 percent, reaching nearly $12 billion by 2028. This surge reflects rising incomes, aspirational spending, and exposure to global lifestyles.  

Key Highlights 

• India’s luxury market valued at $7.74 billion in 2023, projected to reach $12 billion by 2028  
• Luxury car sales crossed 52,000 units in 2025, though 2026 growth may remain modest due to forex volatility  
• Global brands like Louis Vuitton, Gucci, and Rolex expanding presence with flagship stores and localized strategies  
• Millennials and Gen Z driving demand for premium fashion, fine dining, luxury travel, and high-end real estate  
• Digital-first engagement, personalized experiences, and sustainability shaping consumer expectations  
• Government reforms, GST rationalization, and infrastructure upgrades aiding affordability and accessibility  

Consumer Trends  
Luxury in India is shifting from status symbols to curated experiences. Younger consumers seek individuality, sustainability, and digital-first engagement. Social media influencers and e-commerce platforms amplify aspirational lifestyles, democratizing access to luxury. This trend is creating opportunities for both global giants and homegrown premium brands.  

Impact And Reflection  
India’s luxury market is at an inflection point. While short-term challenges like inflation and currency depreciation persist, the long-term trajectory is clear: India is evolving into a global luxury hub. With rising incomes, cultural openness, and brand innovation, the country is poised to become luxury’s next big thing.  

Sources: The Hindu BusinessLine, The Economic Times, Kearney