Kotak Private Banking Introduces India’s First Luxury Price Movement Indicator

Kotak Private Banking launches a first-of-its-kind indicator tracking luxury prices across India

Kotak Private Banking launches India’s first luxury price index

Kotak Private Banking has announced the launch of the Kotak Private Luxury Index (KPLI), a first-of-its-kind indicator tracking price movements across twelve categories of luxury products and experiences in India. Developed with analytical support from Ernst and Young LLP (EY), the index provides a data-based view of how India’s ultra-high net worth individuals (UHNIs) are shaping the evolution of luxury consumption.

As the country’s luxury market moves toward a projected value of USD 85 billion by 2030, the KPLI highlights a shift in preference toward experience-led and mindful living. The index positions itself as an analytical tool for understanding changing cultural and economic behaviour within the luxury segment.

Launching the report, Oisharya Das, Chief Executive Officer, Kotak Private Banking, said the index reflects the changing nature of luxury in India and the growing importance of personalisation and craftsmanship for affluent consumers. “At Kotak Private, we believe luxury is not merely about possession, but about personalisation, exclusivity, craftsmanship, and heritage for India’s discerning ultra-HNI community.”

She continued by saying, “Leveraging our legacy of financial expertise and deep insights into wealth dynamics, the inaugural edition of this report provides a comprehensive benchmark for luxury across multiple asset and lifestyle categories. Through the Luxury Index, we offer a valuable indicator for investors, brands and advisors to understand trends and cultural shifts shaping this vibrant ecosystem. We hope it serves as a compass for those who invest in luxury with purpose, reflecting Kotak’s commitment to helping clients grow wealth and enrich their lives,” she said.

The KPLI recorded a level of 122 in 2025, an increase of 22 per cent since its base year of 2022. Categories such as luxury real estate and designer handbags reported stronger growth than benchmark equity indices during the same period.

Wellness emerged as a significant driver within the index, with health-focused retreats reporting an annual increase of 14.3 per cent since 2022. Exclusive experiences such as expedition travel and fine dining registered an annual increase of 11.6 percent, indicating rising interest in experiential luxury. Branded luxury residences recorded an annual increase of 10.8 percent, underscoring the continued importance of real estate among wealth holders. Designer handbags rose by 10.2 percent annually, while luxury watches and fine wines registered corrections.

Education-related spending also saw an upward movement. Fees at elite international universities rose by 8.4 percent annually, pointing toward education as an important long term priority for affluent families.

The index tracks year-on-year price changes across twelve categories based on value retention, spending behaviour and relative magnitude. The base year 2022 was selected as the first complete post pandemic benchmark. Categories include prime real estate, designer handbags, luxury watches, luxury travel and experiences, health and wellness, luxury automobiles, fine art, fine jewellery, designer shoes, elite universities, fine wines and rare whisky and luxury travel.

Kotak Private Banking: Exclusivity Drives Growth in Designer Handbags

According to the report, rising prices in certain categories reflect increasing demand and the desire for exclusivity. Moderation in others signals corrections aligned with changing preferences, particularly the shift toward health-oriented and experience-based luxury.

Bhavin Sejpal, Partner at EY, said the index’s rise since 2022 indicates a maturing luxury ecosystem in India led by wealth creation and diversified consumption. He added that the data shows luxury is increasingly associated with identity building, legacy creation and value preservation.

The findings position luxury consumption as an indicator of broader cultural evolution and economic confidence in India. The KPLI suggests that for many affluent consumers, luxury is defined less by ownership and more by the quality of life they seek.