Despite continued global economic slowdown, the luxury market in India is pegged to grow at 25 per cent in 2013 till 2015 and likely to touch USD 15 billion from the current level of USD 8 billion, according to a joint study by Assocham and Yes Bank.
The luxury market is poised to expand three-fold in next three years and the number of millionaires expected to multiply three times in another five years, Assocham Secretary General D S Rawat said while releasing the study here.
"Increase in spending is anticipated across the country and beyond the walls of the metros, with increasing brand awareness among the youth and purchasing power of the upper class in Tier II & III cities in India where luxury cars, bikes and exotic holidays and destination weddings are no strangers," he said.
Indian luxury market is projected to reach USD 14.7 billion in 2015.
The number of ultra high net worth households, with a minimum net worth of Rs 25 crore is expected to triple to 2.86 lakh in the next five years with a five-fold increase in their net worth to Rs 235 lakh crore, the study said.
These projections along with the increasing price parity in the luxury products with other international destinations like Singapore or Hong Kong, and customised products offerings would indicate that the luxury market in India would evolve quickly, it added.
The private equity (PE) investments in the luxury sector for the last three years, from January 2009 to August 2012 have been less than a USD 1 billion compared to the USD 35 billion total PE investments during this period.
With the luxury market expected to grow at over 25 per cent year on year, PE investments in the luxury segment are expected to increase and support the enhanced size of the Indian luxury market.