The Economics of Luxury
India's Luxury Market
How India's luxury market is growing with rising wealth, what Indians buy, the role of weddings and jewellery, and why global brands see potential.
India’s luxury market is smaller than China’s but growing.
Drivers
- Rising number of wealthy households and millionaires.
- Young consumers and social media.
- Weddings: a huge driver of spending on jewellery, clothes and gifts.
What Indians buy
- Jewellery, especially gold and diamonds, the largest luxury category.
- Designer clothing, including Indian designers like Sabyasachi and Manish Malhotra.
- Watches, handbags and cars.
- Travel and experiences.
Global brands arrive
- Luxury malls like Jio World Plaza in Mumbai (2023) and DLF Emporio in Delhi host global brands.
- Brands increasingly open directly owned stores.
Challenges
- High import duties make imported luxury goods expensive in India, so many Indians shop abroad in Dubai, London or Singapore.
- Concentrated demand in a few cities.
Indian luxury brands
Indian designers and heritage brands are building home-grown luxury.
The Dubai trip
A wealthy Delhi family flies to Dubai for shopping, where a designer handbag costs noticeably less than in India because of lower duties.
Thinking Indians only buy foreign luxury brands
Jewellery and Indian designers make up a large share of luxury spending.
Key takeaways
- India's luxury market is growing with rising wealth.
- Jewellery and weddings drive much luxury spending.
- Global brands are opening stores in luxury malls.
- High import duties push some shopping abroad.
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