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During the past year, the Indian luxury market has grown 20 percent, with the most growth among luxury products, according to a new report from global consultant management firm AT Kearney (via AFP).
The jewelry, electronics, fine dining, and cars sectors have jumped the most, growing between 30% and 40% in the past year.
Apparel, accessories, wine and spirits have continued a steady growth rate of around 25% to 30%.
Overall, the country's luxury market reached $5.75 billion in 2010, including goods and services, the report said.
The report said it expects growth in the luxury sector to continue as the space grows and the impression remains that India will be largely insulated from the turmoil in the global financial markets.
One major change in India's luxury market is that goods and services are no longer confined to the major cities of Delhi, Mumbai and Bangalore. Today, secondary cities like Chennai, Hyderabad and Pune collectively have more than 30 stores in luxury apparel, accessories, watches and personal care combined.
Consumers have also become more conscious of global trends, and less focused on logo-driven brands.
Digital media has also played an increasingly important role in high-end markets, the report said.
Challenges, of course, remain. There's still relatively little "Indianization" of luxury goods, though there have been some attempts, like a line of saris announced by Hermes earlier this year. And "domestic production of luxury goods needs to be attempted," the report said.
The report predicts another 20 percent growth in the luxury market next year.
Find the complete report here.