AS INDIA’S growth story gains momentum and the number of billionaires and ultra-high-net-worth individuals rises, the country’s luxury market seems to be on steroids. Whether it is high-end watches, luxury cars, lavish residences, luxurious holidays, expensive perfumes, jewellery, or gadgets, Indians are on a buying spree like never before. The growth story is even spreading into Tier II and III towns that are giving rise to a new breed of aspirational Indians who are unabashedly spending on luxury goods. A report by Kearney earlier this year, titled ‘India: The Next Luxury Hotspot?’ points out that the country is renowned for its diamonds, fine textiles, and perfumes, and has a rich history in luxury. Once disconnected from global luxury trends, it is now undergoing rapid transformation — driven by economic liberalisation, rising affluence, and evolving consumer expectations, the report says. According to Kearney, India’s luxury market reached $7.74 billion in 2023 and is projected to approach $12 billion by 2028. Not surprisingly, as the choicest global brands descend on the country, luxury malls are ensuring that the big spenders are spoilt for choice. India is fast emerging as the next big luxury destination.

In our Luxury Issue, we take a look at several aspects of the Indian luxe landscape — from the products and experiences on offer to the emerging trends in the market for luxury goods. As global luxury giants ramp up their India strategy, they are also increasingly opting for Indian faces as brand ambassadors. As Vinod Nair writes in the cover story, several Indian superstars and sporting icons are now faces of many of these global brands — from our cover person Alia Bhatt (photographed in Gucci exclusively for Fortune India) to megastars like Deepika Padukone (Cartier), Ranveer Singh (Ducati), Priyanka Chopra (Bvlgari) and sporting icon Neeraj Chopra (Audi), among others. “The fact that luxury brands are… bringing in Indian talent shows how much India’s influence is growing, not just in terms of market demand, but in shaping global culture,” Bhatt, Gucci’s brand ambassador, tells us.

For shoppers, massive luxury retail spaces are coming up across India — the sprawling Jio World Plaza from Reliance in Mumbai will soon be joined by Galeries Lafayette, which opens in the city in October and is brought to India by the Aditya Birla Group. In other cities too, luxury malls are expanding and new ones are coming up to ensure the big brands making a beeline for India have enough space to showcase their products. As Armando Branchini of Italian luxury brands collective Fondazione Altagamma says in our opening essay, a striking feature of the Indian luxury market is its youthful consumer base, which is digitally native, brand conscious, and motivated by experiences.

Meanwhile, consumption is expected to get a big boost with the mega GST reforms, where the earlier structure has given way to two rates — 5% and 18% — with a 40% slab for ‘sin’ goods like tobacco and paan masala. As Ashutosh Kumar writes, these measures, together with steps to aid the ease of doing business, are expected to lead to a net gain of ₹70,000-1 lakh crore in consumption. That’s what Prime Minister Narendra Modi referred to as the ‘Bachat Utsav’, or savings festival, a much-needed booster dose for consumers. As the Festival of Lights approaches, this promises to be a purple patch for shoppers and retailers alike. Happy Diwali!