India is a breakout market to watch, says Business Of Fashion’s Imran Amed

With its rising number of ultra-high-net-worth individuals (UHNWI) and high-income younger population, coupled with the improving retail infrastructure, India offers vast potential for luxury retail, says Imran Amed, founder & CEO of Business Of Fashion in a conversation with Fortune India.

Edited excerpts:

About 20 years ago, India was seen as the next China for luxury retail. However, it is now, in 2025, that it is being seen that way in a serious manner. What all are the reasons in your opinion? 

I can’t count the number of times I have been asked “Is India the next China” for the luxury sector. There’s no doubt the Indian market is full of potential, but it has historically been hampered by structural and regulatory challenges. Now, the stars are aligning for growth and development the Indian luxury market. There are several key factors driving this shift: 

1. 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. 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. 

2. Retail infrastructure is improving. 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. 

3. There’s a noticeable cultural shift. A 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 sale. 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. 

In this connection, would you like to mention some of your findings from the BoF-McKinsey survey that point towards India’s potential to be a strong market for luxury? 

In The State of Fashion 2025 report, India was spotlighted as a breakout market to watch. Several data points stood out. 

1. In our survey of global fashion executives, India was ranked as the second most promising market for growth after the United States, overtaking China for the first time. 67% of respondents said they see India as a promising growth market. 

2. India’s luxury market is projected to grow at a CAGR of 15–20% this year, significantly faster than the global average. And this isn’t just driven by luxury fashion — there’s strong momentum across beauty, jewellery, watches, and even wellness and experiences.

3. Digital engagement is high. India is one of the world’s largest and fastest-growing markets for luxury content consumption via Instagram, YouTube, and emerging platforms. There’s a significant uptick in luxury curiosity, particularly from Tier 2 and Tier 3 cities, where aspirational consumers are discovering and desiring global brands. 

As you know, the Maharajas of India were seen as the connoisseurs of luxury once upon a time. How do you see the transitioning of consumption of luxury from the Maharajas (then) to billionaire businessmen (now) in India? 

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. 

Today, India’s new luxury tastemakers are billionaire entrepreneurs, technology founders, and second-generation business scions who are globally connected, but also increasingly keen to express their Indianness through what they choose to buy. Like other counterparts in other parts of the world, luxury isn’t about logos — it’s about quality, craftsmanship, experience, and individuality. 

Many of these HNWI customers in India are also drawn to traditional Indian craft — whether it’s handwoven textiles, jewellery, or design — but filtered through a modern lens. This is the new Maharaja mindset: confident, cosmopolitan, and culturally aware.

In addition to the rising number of millionaires and billionaires, India also has a large chunk of high-earning young population (as you know, more than 60 per cent of India’s 1.4 billion population fall under the age group of 40). How do you factor this in when it comes to luxury consumption? 

India’s demographic profile is its greatest asset for the future of luxury. This is one of the world’s largest young, digitally savvy, and increasingly affluent populations — and they are redefining what luxury means for them. 

These customers are aspirational, but they’re also discerning. They’re equally likely to spend on beauty, skincare, wellness, or limited-edition sneakers as on traditional handbags or fashion. They’re influenced by global pop culture, but also value, purpose, authenticity, and heritage. 

According to research from BoF Insights, our data and advisory team, more than 65% of Gen Z consumers say they will consider buying luxury if they feel the brand reflects their personal values and identity. That’s a huge opportunity for brands that can speak to them not just in product, but in purpose.

As opposed to, perhaps, fashion and accessories, today Indians — whether they are in big cities or small cities — are consumers of much finer/expensive things such as  watches and automobiles, even with higher import duties and, on top of that all the local taxes, and of course luxury real estate as well. How do you see this growing further? 

This is one of the most interesting dynamics in India’s luxury evolution — the clear shift from brand recognition to lifestyle integration. For many years, luxury was about the logo; now it’s about the lived experience. 

Despite high import duties and regulatory complexities, categories like Swiss watches, luxury automobiles, and fine real estate are thriving. India was among the top growth markets for Rolex and Mercedes-Benz in 2023, and high-end residential developments in Delhi, Mumbai, and Bengaluru are seeing record prices. 

Why? Because Indian luxury consumers — especially outside the big metros — are becoming more confident and experience-driven. They’re buying not just to signal status, but to reflect success, sophistication, and taste. The next frontier will be categories like art, design, wellness retreats, and even gourmet food — and that’s where I think we’ll see the next phase of India’s luxury boom. 

At BoF, we’re paying very close attention to India not just as a consumer market, but as a cultural force. And in the years ahead, I expect the world will be too.