India is set to become the manufacturing hub for global luxury brands over the next five years. A report released by Federation of Indian Chambers of Commerce and Industry (FICCI)-Yes Bank reveals core strengths of India’s manufacturing sector.
The report is being released along with the launch of the FICCI Lifestyle Forum in New Delhi on Monday, citing the manufacture of luxury items in India could grow to US $500 million dollars.
Stressing this optimism stems from the fact that global brands like Louis Vuitton and Frette are already looking at India as a manufacturing base for their products, while others are sourcing their requirements from India. Also, the cost advantages, particularly in labour intensive sectors like leather and accessories will influence the manufacture of foreign brands in the country.
The report also states that the luxury sector needs to be treated in isolation with other retail sectors as the dynamics governing it are significantly different in nature.
India has the fastest growing high net worth individuals (HWNI) population in the world, income level of consumers expected to triple by 2025, and an active age group (25-45 years) set to rise to a third of the population.