India’s policymakers may be grappling with pockets of concern in the economy as the country seeks to step on the growth accelerator, but there’s one segment which has been taking rapid strides over the past few years. India is now the preferred destination of many of the world’s topmost luxury brands which see it as an immensely profitable market for the future. Thanks to a surge in exposure through foreign travel, media and home entertainment, today’s Indian consumer wants the very best the world has to offer and, in many cases, has the big bucks to afford these luxuries. Whether it is in the form of cars, watches, apparel, hotels, fine dining or personal care, the upwardly mobile Indian consumer has become the toast of the biggest brands in the world. Not surprising then that India’s luxury market is, according to a 2014 KPMG study, expected to stand at $14 billion in 2016, clocking a compounded annual growth rate (CAGR) of 18 percent between 2013 and 2016. From chocolates to footwear and even chartered aircraft, Indians are showing an increasing urge to splurge.
(This story appears in the 13 November, 2015 issue of Forbes India. To visit our Archives, click here.)