BS Manthan: Luxury industry helping in India's economic growth, say experts

The industry provides jobs and helps manufacturing as the economy reaches an aspirational phase, they say at Business Standard summit

Luxury means prosperity and it is shaping the narrative about India's economic progress, said a panel of experts at ‘Business Standard’ summit, Business Manthan, in New Delhi on Thursday.

The panel of experts discussed the significance of luxury in India's economy, highlighting diverse perspectives and insights.

Pushpa Bector, executive director of DLF Retail, said the luxury industry is a catalyst for economic growth. Drawing parallels with other developing nations, she said luxury signifies confidence in consumer evolution and reflects a nation's readiness to embrace the finest things in the world. In India, the luxury market is projected to reach $200 billion over the years, with the retail segment alone accounting for $60-70 billion.

Kapil Chopra, former president of The Oberoi and founder of Postcard Luxury Hotels and Resorts, said India's economy is in an aspirational phase. As the economy grows, there is a trend of people aspiring for better experiences – be it in clothing, hospitality, or technology. India has an opportunity to present its strength in luxury hospitality, leveraging its reputation for having some of the world's best hotels.

Abheek Singhi, managing director and senior partner at Boston Consulting Group, said India's economic development would be defined by a combination of sectors that include agriculture, services and manufacturing. Luxury will have a role in growth, but it will not be the driver. Bringing luxury brands to India can contribute to employment and manufacturing sectors.

Alexis De Ducla, director at Mathieu Lustrerie, said India has a rich heritage of art, culture, and craftsmanship. Recent developments in terms of investment and policy have boosted customer confidence in the country. The shift in consumer behaviour towards quality and experience over the brand name is a testament to India's evolving luxury market, he said.

Nikhil Sethi, partner and national head of FMCG at KPMG, spoke about luxury brands’ growing attention to environmental sustainability due to consumer demand. Luxury brands that prioritise sustainability can not only contribute to a greener future but also command a premium for their ethical practices.

The panelists agreed that luxury in 2047 will redefine a developed India by not only reflecting economic prosperity but also by embodying sustainability, craftsmanship, and a unique Indian identity that resonates globally.