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India’s Luxury Market Set to Reach $12.1 Billion in 2025 as Experiential Spending Accelerates

Younger, high-income shoppers are steering demand toward experiences, prompting brands to recast stores as hospitality-style destinations.

Overview

  • Euromonitor projects India’s luxury goods market to grow about 10% to $12.1 billion in 2025, placing it among the fastest growers alongside South Africa and the UAE.
  • The forecasted compound annual growth rate is 7.4% over the period, with a separate report’s 74% figure identified as an error.
  • Experiential luxury is the fastest-rising segment, with luxury travel and hospitality expected to increase 8% in 2025 to $103 billion.
  • Physical retail remains dominant, accounting for 81% of personal luxury goods sales in 2025, as brands invest in service-rich, experience-led stores.
  • Premium and luxury cars lead value sales, supported by rising affluent populations, urbanisation, attractive financing, and expanding electric model lineups.