Tarun Tahiliani is one of India’s most storied luxury designer brands, known for its opulent ensembles and detailed craftsmanship. Image source: Tarun Tahiliani
Last year ended eventfully with upheavals across the globe: terror attacks in Europe and the Middle East, the Brexit fiasco in the United Kingdom, the unexpected presidential victory of Donald J. Trump in the United States and, last but not the least, the demonetization drive by India?s Prime Minister Narendra Modi, who Nov. 8 ordered the withdrawal of 500- and 1,000-rupee bills from circulation accounting for 86 percent of all cash in the country.
All these factors have had adverse or positive impacts on the luxury business. Indeed, the global luxury industry valued at 1 trillion euros in 2015 by Bain & Co. registered a mere 5 percent growth over 2014. The global luxury market has now reached an era of single-digit growth.
Stellar returns

However, as the rest of the world stabilizes, the Indian growth story is hard to discount.
For most luxury brands, India has become the hottest marketplace.
Growing at approximately 25 percent on a compounded annual growth rate (CAGR), India is estimated to have reached $18.3 billion last year, up from $14.75 billion in 2015.
The single biggest factor contributing to this growth is the steep rise of the affluent class due to the stellar performance of the economy and the startup culture.
Estimates reveal that the number of high-net-worth (HNI) households have grown at a...