According to a Ficci-Yes Bank report on the luxury items market in the country, India is poised to become a manufacturing hub for global luxury brands within the next four to five years.
On the back of growing population of high net-worth individuals (HNIs), the production of luxury items in the country could grow to $500 million in the next two to three years, the research said.
The report said that India’s HNI population is increasing substantially, and an active age group (25-45 years) is set to rise to a third of the population, which will boost the sector.
“This optimism stems from the fact that global brands including Louis Vuitton and Frette are already looking at India as a manufacturing base for their products, while others are sourcing their requirements from India,” the report said.
The report suggested initiatives, including corporatisation and forming partnership with international fashion and luxury councils, for the government and private players in order to expedite the creation of a hub for the manufacture of global luxury brands.
The luxury sector needs to be treated in isolation from other retail sectors as the dynamics governing it are significantly different in nature, Ficci suggested.