Indian luxury brands close revenue gap with global players in FY25: Rediffusion report

Indian luxury fashion brands are narrowing the revenue gap with global luxury houses operating in the country, signalling a structural shift in the domestic luxury market rather than a short-term spike, according to data compiled by Rediffusion’s ICYMI platform.

In FY25, several leading Indian designers reported revenues that are now within ₹0–200 crore of global luxury brands in India — a gap that was once considered unbridgeable. While none of the major international luxury labels crossed the ₹500-crore revenue mark in India during the year, Indian designers are increasingly approaching, and in some cases nearing, that threshold.

Among global luxury brands, Hermès India reported revenue of ₹428 crore in FY25, up 35.4% year-on-year, while Gucci India posted ₹265.4 crore, down 17.3%, and Christian Dior India reported ₹257 crore, a decline of 3.2%. Louis Vuitton’s FY25 India numbers were not disclosed

By contrast, Indian designers showed strong momentum. Manish Malhotra reported FY25 revenue of ₹308.3 crore, registering a year-on-year growth of 34.6%, driven by diversification beyond bridal wear into accessories, handbags and everyday luxury. Sabyasachi is expected to close FY25 with revenue close to ₹500 crore, with jewellery alone contributing more than ₹100 crore and accessories nearing ₹60 crore. Tarun Tahiliani’s business is estimated at around ₹350 crore currently, with a long-term target of ₹700 crore, supported by expansion across couture, prêt, menswear brand Tasva and merchandising initiatives

Industry observers say the growth is being fuelled by repeatable shifts in consumption patterns, including a move from occasion-led purchases to everyday luxury, expansion from apparel into accessories and jewellery, and rising demand from the global Indian diaspora. Luxury consumption is also becoming more frequent, helping brands build scale faster.

The broader market environment remains favourable. India is among the fastest-growing luxury markets globally, growing at around 10% annually alongside markets such as South Africa and the UAE. The Indian luxury market is projected to reach $12.1 billion by 2025, with increasing demand from tier-2 cities and a growing preference for experiences over exclusivity

The ICYMI report concludes that Indian luxury is no longer playing catch-up with global peers. Instead, domestic designers are building institutional-scale brands, with revenue benchmarks converging and accessories and jewellery emerging as key growth engines — marking a fundamental shift in how luxury is designed, built and scaled in India.