India’s Luxury Market to Hit $12.1 Billion in 2025 Here’s What’s Driving It

India’s luxury market is expanding faster than ever. Once known mainly for its mass brands and bargain culture, the country is now stepping into a new chapter of refined consumption. According to recent reports, India’s luxury goods market is expected to grow by 10 percent this year and reach $12.1 billion by the end of 2025, placing it among the fastest-growing luxury markets in the world.

What’s Driving the Luxury Growth

1. Growing wealth and a new generation of consumers

India has added thousands of new millionaires in the past year. A young, global, and connected generation is redefining luxury — not as a display of status, but as a form of experience, creativity, and self-expression.

2. From products to experiences

Luxury in India is no longer limited to handbags or watches. Experiential luxury — from fine dining and travel to curated hospitality — is now leading the market. Consumers want to collect memories, not just merchandise.

3. Global brands investing locally

International luxury houses are redrawing their maps. India is now seen not just as a market to sell in, but as a place to produce, collaborate, and grow. Major names in fashion, beauty, and design are building stronger roots in the country.

4. Retail and pre-owned growth

The pre-owned luxury market is rising fast, especially in handbags, watches, and accessories. With expanding retail spaces and higher spending during festive and wedding seasons, India’s appetite for luxury is broader than ever.

Why It Matters

For global luxury brands, India is no longer an emerging afterthought — it’s a strategic priority. The country’s consumers value craftsmanship and heritage, but they also expect meaning, emotion, and cultural connection.

As someone exploring luxury, sustainability, and craftsmanship, I see this shift as essential. It challenges brands to go beyond aesthetics and logos, and instead build experiences that align with modern values of authenticity, creativity, and responsibility.

My Perspective

India’s luxury story is about more than rising wealth — it’s about transformation. Luxury here is being redefined as a reflection of identity, awareness, and purpose.

This evolution signals something powerful: the move from ownership to experience, from aspiration to meaning.It shows that the future of luxury in India and globally will be shaped not by excess, but by understanding what truly matters.

Written by Shubham Kumar