India's Billionaire Boom: India is no longer just producing the wealthy — it is redefining what luxury means. From multi-crore watches to high-end fashion and international labels, luxury in India is increasingly being customized and curated for India. This is more than just a trend — it's a new economic revolution. India is now leading not just in population or startups, but also in the rapid pace at which millionaires and billionaires are emerging.
A recent report by Maxxi & Co. and Business of Fashion highlights that India is witnessing the fastest growth in Ultra High Net Worth Individuals (UHNIs) — those with a net worth of over ₹200 crore. Between 2023 and 2028, the number of such individuals in India is expected to grow by an astonishing 50%. This growth rate is the highest in the world and is having a significant impact on the country's luxury market.
According to the report, India’s luxury market is projected to grow annually by 15% to 20% until 2025. But this isn’t just about the entry of big global brands or the launch of high-end malls — it reflects deeper socio-economic changes. As the income levels of India’s middle and upper-middle classes continue to rise, so does the aspiration for luxury products. Luxury is no longer merely a status symbol; it is rapidly becoming the new normal.
The report also notes the emergence of luxury retail infrastructure, especially in Tier 1 cities. High-end malls like Jio World Plaza and Galeries Lafayette are setting new benchmarks in luxury shopping destinations. In response, the government has increased import duties on items valued above ₹1 lakh, making imported luxury goods more expensive. This has, in turn, nudged wealthy consumers to turn toward local stores and homegrown luxury brands.
Despite a steep 28% GST on luxury goods — one of the highest globally — the domestic demand remains strong enough that this tax burden has not been able to suppress growth. In contrast, traditional luxury markets like Japan are now witnessing slower momentum. Japan’s luxury sector is projected to grow only 6% to 10% by 2025, and its UHNI population is expected to grow by just 12% — significantly lower than India’s 50% surge.
India has also surpassed Japan at a macroeconomic level. According to NITI Aayog CEO PVR Subramanian, India has now become the fourth-largest economy in the world. While the global luxury industry saw a compound annual growth rate (CAGR) of 5% from 2019 to 2023, the slowdown in major markets like China has created a void. India, with its youthful and increasingly affluent population, is now filling that space with unprecedented momentum.
Powered by growing investment, enhanced infrastructure, and booming domestic demand, India is steadily advancing toward becoming the world’s true luxury capital. So the real question is no longer if India will become the next luxury destination, but which brand will be the first to fully integrate itself into this new India. Because the real shine of the luxury world now begins here.
Disclaimer:
The information presented in this article is based on recent reports and market trends. While every effort has been made to ensure accuracy, readers are advised to consult original sources or financial experts before making investment or business decisions. This article is for informational purposes only and does not constitute financial or investment advice.
