13 June 2024

Say hello to the new Maharajahs: India is the next luxury hub

For a decade, China has been the engine for global luxury growth. China now accounts for 25% of global luxury spending, but this year, China’s growth has slowed to a trickle.

India today is a much smaller luxury market, representing 5% of global luxury spend, but it’s suddenly seeing explosive growth.

GDP growth, 8.2% in 2023, lit the touch paper. Next: the fireworks.

India is the fastest-growing major global economy. Political reform and a fast-growing, hyper-aspirational, young middle-class are driving India toward being the third largest consumer market globally.

The luxury and ultra-luxury sectors, across real estate, hospitality, apparel, accessories and automotive, are witnessing phenomenal growth. In BDA’s latest insight piece, we analyse the tremendous growth of luxury in India.

  • India successfully rebounded from the disruptions of COVID-19 to emerge as the fastest-growing major economy
  • By 2030, 25% of India’s population will be aged between 20 and 33, positioning India as the largest “young consumer market” globally
  • The credit landscape has significantly shifted towards “buy now, pay later”, driven by an expanding ecosystem and increased discretionary spending
  • The Reserve Bank of India is enhancing credit accessibility in underserved sectors such as agriculture, small and medium enterprises and housing
  • India as a global tech hub has driven widespread adoption of digital payments, online shopping and social media engagement, prompting local companies to integrate new technologies to cater to evolving consumer demands
  • India’s luxury market is set to more than triple by 2030, driven by a growing consumer base and increasing wealth, particularly from high-net-worth individuals
  • India’s burgeoning high-end market is attracting global brands and incubating local luxury too 

Download the full report for more insights on the luxury sector in India

About BDA Partners

BDA Partners is the global investment banking advisor for Asia. We are a premium provider of Asia-related advice to sophisticated clients globally, with over 25 years’ experience advising on cross-border M&A, capital raising, and financial restructuring. We provide global reach with our teams in New York and London, and true regional depth through our seven Asian offices in Mumbai, Singapore, Ho Chi Minh City, Hong Kong, Shanghai, Seoul and Tokyo. BDA has deep expertise in the Chemicals, Consumer & Retail, Health, Industrials, Services, Sustainability and Technology sectors. We work relentlessly to earn our clients’ trust by delivering insightful advice and outstanding outcomes.

BDA Partners has strategic partnerships with William Blair, a premier global investment banking business, and with DBJ (Development Bank of Japan), a Japanese Government-owned bank with US$150bn of assets.

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