India’s luxury fashion industry is projected to expand significantly over the next decade, driven by rising household wealth, increased wedding spending, and entry of international brands, despite infrastructural challenges.
India’s luxury fashion market is on track for steady expansion over the next decade as rising household wealth, heavy wedding spending and continued entry by overseas brands widen demand, according to IMARC Group. The consultancy said the market was worth $9.85 billion in 2025 and could reach $15.17 billion by 2034, a forecast that covers luxury clothing, footwear and accessories including jewellery, bags and watches.
Clothing remains the biggest part of the business. IMARC estimated that apparel accounted for 61% of the market in 2025, helped by demand for designer ethnic wear, bridal and occasion clothing, premium Western styles and higher spending on craftsmanship and exclusive materials. Women made up 52% of spending, while North India led regional demand with a 30% share. IMARC’s separate luxury apparel estimate put that segment at $7.77 billion in 2025, rising to $10.9 billion by 2034.
The customer base is also broadening. Goldman Sachs Research has projected that India’s affluent population will rise from about 60 million people in 2023 to 100 million by 2027, creating a larger pool of potential buyers for premium and luxury labels. Retail is still dominated by bricks-and-mortar shopping, with physical stores accounting for about 70% of luxury fashion sales in 2025 because customers often want tailoring, styling and a more immersive brand experience.
Even so, the market’s next phase will depend on whether brands can overcome structural constraints. Reuters reported in March that India had only three malls regarded as dedicated luxury destinations, limiting the pace at which international fashion houses can open stores. High import duties, taxes, counterfeiting and price-sensitive consumers remain additional hurdles. IMARC said local partners are often essential for market entry, and Reliance Brands said it has brought 85 international labels into India across luxury, premium and lifestyle categories, with SKIMS due to launch in Delhi and Mumbai through physical and digital channels in August 2026.
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