What’s Fueling India’s Luxury Surge?

If the last few landmark moments are anything to go by, it’s clear that India is no longer just on the radar—it’s leading the luxury conversation. While the luxury market faces a slowdown worldwide, India is seeing a historic surge across categories. As per a Statista report, the luxury goods market in India is currently valued at US$23.16bn, and is projected to grow annually by 5.96% (CAGR 2025-30). The signals are loud and clear. Dior kicked things off with a grand pre-fall showcase at Mumbai’s Gateway of India in 2023. Vivienne Westwood followed in 2025, making its India debut at the same venue. Rahul Mishra, a champion of Indian craftsmanship, is taking the country global through his Paris Haute Couture showcases. But the biggest headline of the year came at Louis Vuitton’s Spring/Summer 2026 menswear show at Paris Fashion Week. A Snakes-and-Ladders-inspired runway by architect Bijoy Jain and a soul-stirring score by A.R. Rahman placed India boldy at the centre of the global luxury stage. Indian luxury is no longer a quiet presence—it’s a global force. In another culturally loud moment, Prada’s reimagined Kolhapuri sandals—presented at its SS26 Milan show—sparked backlash for omitting attribution to India. The brand followed up with an on-ground visit to Kolhapur and plans for a GI-tagged ‘Made in India’ capsule, signalling a more collaborative direction going forward.

Olympic and World Champion athlete Neeraj Chopra and Balbir Singh Dhillon, Head of Audi India at the launch of the Audi RS Q8 |

While the growing list of international brands foraying India is unstoppable—Giorgio Armani, Valentino, Balenciaga and now Canada’s Lululemon set to enter the Indian market in 2026, it’s not just the global fashion houses, but India is now a must-have destination in the global luxury playbook across categories. In hospitality, high-end travel experiences are finding eager takers both within metros and in India’s once-overlooked second cities. Global hotel chains have taken note: Hilton plans to multiply its India footprint tenfold in the next decade, introducing iconic brands like Waldorf Astoria and LXR. Hyatt and Marriott are similarly bullish, including spiritual and heritage-rich locations in their pipeline to attract the country’s growing pool of luxury-seeking travellers.

The luxury automobile sector, once niche, is too now firing on all cylinders with record sales this year in India driven by premium SUVs, expanding EV portfolios and greater localisation. With a surge in high-net-worth individuals, second-gen entrepreneurs, and luxury-savvy Gen Z buyers, India is no longer an emerging market—it’s a commanding voice in shaping what luxury means today.

To understand this new shift in the luxury landscape, we spoke to key voices leading the change. Below are key insights that offer a compelling picture of where luxury in India is headed next—and why the world is finally paying attention.

Gopal Asthana, CEO, Tata CLiQ

“The definition of luxury for Indian consumers is evolving beyond traditional markers of wealth and exclusivity. With rising disposable incomes, digital access, and a new wave of global and local brands, consumers are seeking more than just premium products—they want meaning, personal relevance, and immersive experiences. E-commerce and virtual boutiques to AI-powered personalisation is now transforming how Indian consumers engage with luxury brands. Brands are incorporating AI, machine learning, AR, and VR to deliver hyper-personalised and immersive experiences. AI-powered tools curate product recommendations based on individual preferences, past behaviours, and purchase history. While trust and authenticity are key in luxury, blockchain technology helps maintain this by offering transparent supply chains and verifying the authenticity of pre-owned luxury goods. At Tata CLiQ Luxury, initiatives like digital boutiques, the Select Program, and assisted selling are redefining the high-tech, high-touch luxury experience in India. Millennials and GenZ are an important cohort in the luxury landscape today, who demand transparency, social responsibility, and inclusivity, and are prompting brands to rethink not just products, but also how they communicate and operate.”

Akanksha Lamba, Co-Founder, and Senior Vice President Operations, The Postcard Hotel

“Today’s travellers want to feel deeply, not just be impressed. They want to participate in luxury, ask more questions, linger longer, and appreciate the details. This deeper engagement is the real evolution in luxury. At The Postcard Hotel, luxury isn’t about visual opulence—it’s about presence, purity, and ease. It’s the absence of noise—both literal and metaphorical. Our brand is rooted in India but designed for the world. Each Postcard property is distinct, shaped by its surroundings, community, and cultural context. To make ‘Made in India’ luxury a global benchmark, we must stop trying to fit into global moulds. The future lies in authenticity, discretion, and thoughtfulness. What will truly position India at the forefront is the move from formulaic to experiential, from superficial to sensory. Travellers seek not just comfort—but connection, story, and memory.”

Udai Pinnali, CEO, Aditya Birla New Age Hospitality

“There’s a conscious shift towards quality over quantity. The emphasis is now on experiential luxury that encompasses curated experiences, whether it’s travel, lifestyle and dining. Discerning consumers are now looking for exclusivity, but with a growing appreciation for craftsmanship that showcases cultural heritage, while providing excellent personalised customer experiences. Our approach comprises two pillars – one, our view that every meal is an experience, and two, that authenticity is core to great hospitality. Be it international brands like Hakkasan, Yauatcha and Nara Thai, or home-grown favourites like CinCin, Ode, Supa San and Waarsa, these tenets remain consistent. Authenticity for us is staying true to the cuisine and providing heartfelt hospitality. It is time we proudly showcase the legacy and diversity of heritage that India has to offer. Luxury today is about embracing the many Indias, not just one.

Balbir Singh Dhillon, Head of Audi India

“Luxury in India is being redefined by a new generation of consumers who seek purpose, personalisation and progress. Younger consumers, especially, Gen Z and millennials, are reshaping the definition of luxury in the automotive space. It is about cutting-edge technology, sustainability and meaningful experiences. India is one of the most dynamic and promising luxury markets globally, and the presence of more luxury auto brands only raises the bar and helps grow the ecosystem. What will differentiate and sustain a brand is its ability to remain authentic while evolving with the consumer. At Audi India, 72% of our buyers are under the age of 50, which signals a shift in the demographic driving the luxury car market. This audience is tech-savvy, experience-driven and seeking design, innovation, sustainability and digital convenience. They’re not just buying a car—they’re investing in a brand that reflects their identity and lifestyle. That’s why we’re focusing on offering elevated ownership experiences, curated brand programs and digital touchpoints that resonate with this new wave of luxury consumers.”

With inputs from Sayoni Bhaduri

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