The urge to splurge: How Indians’ appetite for luxury is booming

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.