New Delhi, Feb 28 (PTI) India’s luxury market is set to grow to USD 30 billion from USD 23.8 billion by the year-end on back of growing exposure of international brands amongst Indian youth and higher purchasing power of the upper class in tier II and III cities, Assocham said today. Also Read - Monsoon Session Day 2: Lok Sabha Passes Essential Commodities Bill to Raise Farmer Income, Boost Agri Sector | Highlights

The chamber pointed out that economic growth, leading to urbanisation and higher disposable incomes, has helped propel growth of luxury goods. Moreover, increasing retail presence of luxury players across the country and higher numbers of brands entering the country has resulted in strong performance of luxury goods. Also Read - 'Jammu And Kashmir to Reopen For Tourism Soon', Says J&K Administration

“Well-travelled consumers and a stable economy, coupled with a young population with growing disposable incomes, spell good news for luxury brands across the world. With positive regulations and policies for the retail industry being put in place by the government, India is a market that can no longer be ignored by international brands,” said the chamber. Also Read - COVID-19: Centre Announces Guidelines For Unlock 2, Lockdown Till July 31 in Containment Zones

However, lack of suitable infrastructure, high tax rates, rental costs and parallel growing market of counterfeits are some major problems that are a cause of concern for luxury players entering India.

“Thus, the Indian market represents huge opportunity for the foreign luxury players, but it needs to fix the existing loopholes,” Assocham said.

According to a study conducted by the chamber, Indian luxury market is poised to expand five-fold in next three years and the number of millionaires are expected to multiply three times in five years. PTI RSN RSN ANS ANS

This is published unedited from the PTI feed.