Indian Luxury market is worth $377 million growing at 28% annually
There are over one million luxury customers in India and this figure is expected to triple by 2010. The Household Income Survey by the National Council of Applied Economic Research says that by 2010, there will be 140,000 households with an annual income of more than Rs. 1 crore i.e. 10 million USD.Accoring to According to the McKinsey Global Institute, consumers earning more than 1,000,000 rupees a year will total 24 million by 2025 – larger than China’s comparable segment. Their share of private consumption is projected to increase from 7% to 20% in 2025.

A survey conducted by AT Kearney estimates that the Indian luxury market is worth $377 million and is likely to growth at an annual rate of 28% in the next three years. The rapid growth of the Indian middle class means that a larger number of consumers are able to afford luxury goods than ever before. McKinsey forecasts that the Indian middle class (defined as those with disposable incomes from 200 thousand to 1 million rupees a year) will increase from approximately 5% to 41% of the population and will become the world’s fifth largest consumer market by 2025. Indeed, the desire for international brands is also driving consumption abroad.

Market regulation
Although high import duties on luxury goods continue to prevail, India’s policy of liberalization and deregulation has improved its image as an attractive destination for foreign investment. Foreign companies that sell products under a single brand, such as Ermenegildo Zegna, have recently been allowed to acquire up to 51% in Indian joint ventures. The introduction of market reforms is winning over the long-term commitment of foreign investors. India will also become a future manufacturing hub for global fashion and luxury goods

Democratization of luxury consumption:
The shopping mall boom is set to democratize luxury consumption. A pioneering project is the opening of the Delhi luxury-goods mall, Emporio, in March 2008. Shoppers will be overwhelmed by over 70 international high-end brands, but also immersed in a pleasurable and memorable shopping experience.