India’s luxury goods market has been largely unaffected by the country’s economic slowdown and is poised to expand threefold in the next three years, according to new research. 

In a recent paper, ASSOCHAM, the Associated Chambers of Commerce and Industry of India said the country's luxury goods market was worth an estimated US$8.5bn in 2013, up from $6.5bn in 2012.

It added that revenues were expected to exceed $14bn as the market expanded threefold over the next three years, with the number of millionaires also expected to multiply by the end of 2017.

“A young demographic profile, growing number of millionaires and billionaires, and aspirational integration with the globe are all among the driving factors for the luxury markets which see a big potential in India,” said D S Rawat, ASSOCHAM secretary general.

“Since the high-end products and lifestyles are not price-elastic, they don’t get much affected by the slowdown.”

ASSOCHAM highlighted the “craze” among young people for branded products as one of the driving factors of growth, pinpointing Gucci, Christian Dior, LVMH India and Judith Leiber among the strong performers in 2013.

“Luxury jewellery, electronics, SUV cars and fine dining have grown beyond expectations, while apparel, accessories, wines and spirits have continued their strong growth in 2013,” said Rawat.