JAGATJIT SINGH, the Maharaja of Kapurthala, was a well-heeled traveller, who made multiple trips to Europe in the days when the voyage would take several weeks. A patron of the high life, his baggage was carried in a retinue of custom-made Louis Vuitton shipping trunks. His contemporary, Maharaja Bhupinder Singh of Patiala, was among those who carried hundreds of precious stones all the way to Europe, to get his jewellery made by luxury brands such as Boucheron, Cartier, Van Cleef & Arpels.

“The maharajas were well-read and well-travelled,” says Tikka Shatrujit Singh, the great-grandson of Maharaja Jagatjit Singh and chairman of luxury consultancy JMC. “They used to check into the Ritz Paris and the owners of luxury brands themselves used to come with their merchandise to show them and make custom-made products.”

The days of monarchy may be over, but a new set of Indians have the potential to keep that legacy alive. “There’s a throughline in Indian luxury that goes back to the days of the maharajas — patronage, pageantry, and personalisation have always been part of the Indian luxury experience. What’s changed is the identity of the customer and the source of their influence and wealth,” says Imran Amed, founder & CEO of the London-based The Business of Fashion (BoF), a leading digital authority on the world of fashion.

Amed says the new consumers of fashion in India are billionaire entrepreneurs, technology founders, and second-generation business scions. “Like their counterparts in other parts of the world, luxury isn’t about logos — it’s about quality, craftsmanship, experience, and individuality.” According to Amed, many of these high net-worth individuals (HNWI) are also drawn to traditional Indian craft but filtered through a modern lens. “This is the new maharaja mindset: confident, cosmopolitan, and culturally aware,” says Amed.

GROWING LUXURY MARKET

Those tracking the space say that more and more people are consuming luxury in India. According to a recent survey conducted jointly by consultancy McKinsey & Company and BoF, the Indian luxury market is expected to grow 15-20% in 2025, fuelled by demographic and structural shifts, while India’s ultra HNWI (UHNWI) population is expected to grow by 50% in 2023-2028, making it the fastest-growing UHNWI population globally. “As the world’s fastest growing economy, and with the U.S. and China experiencing [a slowdown], India is attracting the attention of international brands,” says Stefania Lazzaroni, CEO of Milan-based Fondazione Altagamma, an Italian association of luxury brands that works towards promoting luxury brands globally. “This is further fuelled by India’s GDP growth at 7% and the promising growth of millionaires and billionaires expected to grow by 50% in the next three years.”

Amed agrees, adding that in BoF’s ‘The State of Fashion 2025’ report, India was spotlighted as a breakout market to watch. “In our survey of global fashion executives, India was ranked as the second most promising market for growth after the U.S., overtaking China for the first time; 67% of respondents said they see India as a promising growth market.”

The country also has the biggest young population in the world with 65% being under 35 years. “A striking feature of India’s luxury market is its youthful consumer base. This demographic is digitally native, highly brand-conscious, and motivated by experiences as much as by ownership,” says Armando Branchini, honorary ED of Altagamma. “Millennials and Gen Z consumers, in particular, are reshaping the contours of luxury through preferences for sustainability, personalisation, and digital engagement.”

According to Knight Frank, the number of Indian billionaires is on the rise with the total now touching close to 200 with a combined net worth of $950 billion. “Market analysts forecast the number of UHNWIs in India to grow by 58% between 2023 and 2028. These individuals form the backbone of luxury consumption, particularly in sectors such as automobiles, real estate, high fashion, and bespoke jewellery,” says Branchini.

DESTINATION INDIA

Luxury brands started entering India during the early 2000s. But they were limited to shopping arcades at five-star properties due to a lack of luxury retail spaces. All that changed with the launch of India’s first luxury mall in Delhi, the DLF Emporio, in 2008. In the next few years, the luxury retail space in India is expected to grow from around 4 million sq. ft now to nearly 10 million sq. ft.

While malls are in the process of doubling their retail spaces, massive multi-brand retail concepts from abroad are also coming to India. Aditya Birla Fashion and Retail Ltd (ABFRL) has already set the ball in motion for the launch of Galeries Lafayette, the French luxury multi-brand store with a number of luxury brands. ABFRL has found its retail space in the Fort area in Mumbai and is gearing up for its launch on October 26. In the meantime, Reliance Brands Ltd (RBL) is also scouting for a massive retail area in Mumbai to launch the iconic Saks Fifth Avenue, another multi-luxury brand retail venture.

“The launch of the store is about a year and a half away. Once launched, it will have hundreds of brands, including some of the existing ones from our portfolio and some new additions,” says an RBL executive who declined to be named.

But why are luxury brands lining up to enter India? “First, the macroeconomic fundamentals are compelling: India is now the world’s fastest-growing major economy, projected to grow at over 7% annually through the end of the decade, which should soon make it the third-largest economy in the world,” says Amed. “This growth is translating into a rapid rise in the number of high-net-worth individuals with the spending power and desire to express themselves through their lifestyle choices. Second, the retail infrastructure is improving with high-end retail spaces like Jio World Plaza and the upcoming Galeries Lafayette in Mumbai will begin to offer the kind of physical presence luxury brands expect. Luxury e-commerce and digital engagement are enabling brands to connect with consumers beyond the major capitals. And finally, there’s a noticeable cultural shift as well.”

According to Amit Pande, business head (The Collective and international brands), ABFRL, there has been a clear increase in demand for premium brands across the country. “There is no doubt that with the rise in income and awareness levels, thanks to the large consumption of social media, the sales numbers are going up,” he says. “Online purchases are pretty strong. In fact, about 25% of the overall sales of The Collective comes through online sales. Over the years, physical presence of The Collective has gone to 21 stores across the country.”

LIVING THE HIGH LIFE

Several sectors are experiencing strong growth driven by evolving consumer preferences. The high-end automobile market — dominated by brands such as Mercedes-Benz, BMW, Audi and Volvo — continues to be a top performer. “To a large extent, the sale of our top-end vehicles mirror the growth of HNIs in India and the average age [of the customer] for even the top-end cars is 38,” says Santosh Iyer, MD & CEO, Mercedes-Benz India.

He says that in the 30 years the company has been in the country, the majority of the sales have come in recent years. “Out of 200,000 cars sold [in these 30 years], the last 100,000 were sold in the past six years, and the last 150,000 were sold in the last 10 years.”

While there is increasing demand for luxury carmakers such as Rolls-Royce, Porsche, Lamborghini, Ferrari and Bentley, there are challenges such as high taxes and infrastructure, says Francesco Scardaoni, APAC Region director, Automobili Lamborghini. “Despite these challenges, in 2024, Lamborghini had our record year of 113 units delivered — making India our 14th largest market globally and the sixth in the Asia-Pacific.”

And customers are not just buying cars; they are customising them. “We also see an increasing demand among Indian customers for customised automotive experiences, with a strong preference for personalised features and customisation options,” says Scardaoni. Agrees Iyer. “More than 70% of our cars are Manufaktur — the customising option from Mercedes-Benz — and customers are happy to spend anywhere between ₹60 lakh and ₹1.5 crore for both interior as well as exterior customisations,” says Iyer.

A Rolls-Royce dealer, who declined to be named, says that his customers go all out with customisations, adding that since India signed the FTA with the U.K. their sales have slowed a bit “as customers are waiting to see how they are going to benefit from it”.

Luxury real estate is another thriving segment. “In the first half of 2025, the luxury housing segment alone saw an 85% year-on-year growth with nearly 7,000 units sold across the top seven cities. Delhi-NCR led this trend, contributing nearly 57% of the sales during this period, followed by Mumbai with 18%,” says Anshuman Magazine, chairman & CEO for India, South-East Asia, Middle East & Africa at CBRE. According to him, in the past few years, the concept of luxury housing has rapidly evolved in India. Homebuyers are seeking bespoke experiences, exclusivity, and future-ready amenities. “There is a marked increase in branded residences, ultra-luxury penthouses, and high-rise sky villas, often developed in collaboration with global hospitality or design brands,” he says, adding that developers are stepping up launches to match the demand. “In H12025 alone, approximately 7,300 new luxury units were launched, a 30% YoY increase concentrated primarily in Delhi-NCR, Mumbai, and Hyderabad.” According to Aakash Ohri, joint MD & chief business officer, DLF, affluent people are increasingly opting for these luxury apartments not just because of the aesthetics and quality, but also because of the services that come with it. “Giving the customers the kind of services ranging from valets and concierges to world-class chefs, spas, restaurants, health clubs, cinema and 24-hour security, etc., are as important today as building a world-class residential project,” he says, adding that 50% of his company’s upcoming project called DLF Dahlias, where residences cost `75-140 crore, have been sold. There has also been a noticeable surge in luxury watch consumption. Retailers such as Ethos Watches are tapping into this, with flagship spaces such as its ‘City of Time’ in Gurugram, that showcases ultra luxury international brands, immersive experiences, and lifestyle offerings such as cigar and wine lounges. “We’ve seen a notable shift from transactional buying to more informed, passion-led collecting. This is being driven by a combination of rising disposable incomes, greater exposure to global trends, and a deeper cultural appreciation for legacy,” says Pranav Saboo, director, Ethos Watches. Amed says that the new generation of Indian consumers is unapologetically global in outlook but deeply rooted in their Indian identity — and they’re looking for products that speak to both. Brands that understand this duality, and respect Indian culture, will be well positioned. “That said, it is important to note that as it stands, India represents about 1% of a given luxury brand’s sales. The growth opportunities in the Indian fashion market are still much more geared towards young, aspirational customers with limited disposable income. The luxury play is still a relatively long-term one.”