According to a study by Assocham, India’s luxury market is likely to grow by around 20 percent from the present $14.7 billion to $18.3 billion in 2016, as per reports. The factors to contribute to this as per the study are increasing brand awareness within the youth audience and increase in purchasing power amongst the upper class in Tier II & III cities, as per reports.

The study was conducted in cities of Delhi, Mumbai, Kolkata, Chennai, Ahmedabad, Hyderabad, Pune, Chandigarh and Dehradun. As per Assocham, the luxury market, including five star hotels, fine-dine restaurants, electronics, luxury personal care items, and jewellery clocked a good performance in 2015 and the next three years could see them grow by around 30-35 percent, as per reports. Also, as the expected growth in the luxury market is pegged at around over 25 percent on y-o-y basis, Private Equity investments (PE) within it is likely to increase and support the rise in the Indian luxury market, as per the study, reports add. Increased internet penetration across the tier-II and tier-III cities has also aided growth in this segment with a projection that along with the increase in the disposable income, it could culminate into around 100 million transactions through the Internet by 2020.