(Commonwealth_India) In a world where growth forecasts are dim and trade routes are being rewritten by tariffs, India has quietly emerged as the new favorite for global brands. Over the past few months, the country has experienced a surge in activity; the Italian fashion label OVS made its debut earlier this October, and global executives have been frequenting the country to launch products and gauge consumer demand. For many, India now stands out as the single bright spot in an otherwise uncertain global economy.
Across the US, Europe, and China, slowing consumption has cast a shadow on business expansion. But in India, a young and ambitious population is fueling demand for everything from fashion and beauty to cars and watches. With rising disposable incomes and a growing say in household spending, this generation is changing how brands think, sell, and tell their stories.
Shiseido, a Japanese luxury beauty giant, has recently made a significant investment in India by planning to initiate local manufacturing as part of its growth strategy. It joins names like Estée Lauder and The Body Shop, both exploring partnerships to make or scale up production in the country. For the global luxury industry, India has become the fastest-growing market, a place where indulgence meets sheer scale.
That shift comes at a time when the world’s biggest economies are struggling. Inflation and weak consumer sentiment in the US and Europe, coupled with tariff tensions, are pushing multinational companies to look elsewhere for growth. In this global shift, India emerges as a unique opportunity.
Before the pandemic, India welcomed about a dozen new foreign brands each year, according to Cushman & Wakefield. By 2023, that number rose to 14, and in 2024, it nearly doubled to 27, signaling a surge in confidence among global retailers.
The momentum is being driven by a new kind of consumer: younger, digital-first, and open to experimentation. Following the pandemic, online shopping became a common practice, transforming the way households discover and engage with brands. That digital momentum continues to strengthen, even as global economic clouds gather.
Consumer confidence in India, too, has surged. The Current Situation Index stood at 96.5 in July 2025, while the Future Expectations Index reached 124.7, both well above pre-pandemic levels. People are more optimistic about jobs, income, and the economy. Analysts say this sense of stability is spreading across urban, semi-urban, and even rural areas, giving India’s growth a broader and more balanced foundation.
Families, feeling secure about their future, tend to spend more on homes, cars, travel, and other high-value items. That willingness to spend is visible across income levels and cities, extending India’s consumption boom far beyond the metros.
For Italy’s De Rigo Group, which owns eyewear and watch brand Police, this energy is impossible to miss. “Europe is important, but it’s an older market. We cater to millennials—and India is the perfect platform for that,” said owner Barbara De Rigo. With its biggest markets, the US and China, hit by tariffs and slower sales, she says, “India is outstanding given the worldwide situation,” and the company is now exploring local manufacturing.
While American consumers are tightening their belts, India’s consumption story remains strong. Whether it’s affordable luxury, premium names like Police, or mid-range players like OVS, which sells at an average price of around ₹2,200, global companies are betting that India’s diversity and scale will drive their next phase of growth.
Even brands that have been in the country for years are ramping up. Danish toy giant Lego, for example, opened its first exclusive Indian store this year in Gurgaon, expanding beyond its existing presence through retail partners. Each such launch adds another name to the growing list of international players making India central to their plans.
Digital retail platforms such as Tata Cliq, Myntra, and Nykaa power much of this expansion. In a country where physical retail space is limited and expensive, these online marketplaces are helping brands reach new consumers and launch categories such as perfumes, watches, and accessories with relative ease.
A recent report by Euromonitor International highlights India’s growing clout in the global luxury market. Alongside South Africa and the UAE, India ranks among the fastest-growing luxury destinations, up 10% this year. Over the forecast period, experts project the total luxury market to reach $12.1 billion, exhibiting a staggering compound annual growth rate of 74%.
The rise of wealthy and upper-middle-class consumers closely correlates with this surge. Chanel Beauty and Fragrance, for instance, launched on Nykaa this year, proof that luxury is no longer confined to a few physical boutiques in big cities.
For Swiss watchmaker Maurice Lacroix, India’s transformation has been extraordinary. “We have seen an evolution of India, which is incredible,” said managing director Stéphane Waser. Since entering in 2019, the company has already made India one of its top ten markets globally, with ambitions to reach the top five within a few years. Priced at just over ₹1 lakh, its watches have found what Waser calls “a sweet spot,” perfectly positioned between aspiration and affordability.
OVS, a new entrant, finds the opportunity too significant to ignore. In contrast to other countries where it relies on franchise partners, the Italian fashion retailer has opted to operate independently in India. “India is a very strategic country. We have built a local team here,” said Carmine Di Virgilio, the company’s global chief retail officer.
Global brands are actively investing in India as other economies falter. What was once considered a frontier market is now at the center of global retail ambition, a country where the next decade of consumption is already taking shape.
