According to a report by McInsey & Co. and Boff, India will see the fastest growth in the world’s fastest growth in the number of ultra-high-net-world individuals (UHNWIS), their population is expected to increase by 50 percent between 2023 and 2028.
The State of Fashion Luxury Report states that the Indian luxury market is expected to increase between 15 to 20 percent in 2025, surrounded by demographic and structural changes.
According to the report, new luxury malls and department stores, such as Jio World Plaza and Galeries Lafayette, are increasing luxury real estate in Tier-One cities. It further states that newly increased taxes on imported goods over Rs 700,000 (USD 8,400) are expected to encourage domestic expenses, although domestic goods and service tax on luxury goods is more than 28 percent.
Compared to Indian development, the Japanese luxury market is expected to increase between 6 to 10 percent in 2025, maintaining its position as a main luxury market. The increase in Japanese markets will be powered by both solid domestic demand and tourism expenses.
Recently, Niti Aayog’s CEO BVR Subrahmanyam announced that India had beaten Japan to become the fourth largest economy in the world.
The CEO of India’s top think tank, citing data from the International Monetary Fund, said that India’s economy has reached the USD4 trillion mark.
According to the report, Japan is the second largest number of UHNWIS home in Asia, which is expected to increase by more than 12 percent from 2023 to 2028. The growth rate of UHNWIS in India is higher than in Japan.
According to the April version of the IMF of the World Economic Outlook Report, the financial 2026 is expected to reach the USD 4.187 trillion around the nominal GDP. It is marginally higher than Japan’s potential GDP, which is estimated to be USD 4.186 billion.
The report stated that in the last five years, the luxury industry experienced the period of extraordinary value manufacturing. Between 2019 and 2023, unprecedented demand for individual luxury goods – fashion, handbags, watches and jewelery of them – joint
With a deep well of the supply, the area allowed to achieve 5 percent compound annual growth rate.
Luxury brands improved global markets and achieved new profitability records. But so far in 2025, the luxury industry has faced a significant recession that has barely hit top brands. Luxury price creation declined for the first time after 2016 (except 2020).
Many development-driving engines of the industry have stopped. Macroeconomic headwinds in the leading China market – especially, exceeding 18 percent from 2019 to 2023 – has been highlighted in the region, which is underweight in the region. (AI)
