Iconic French luxury department store Galeries Lafayette is set to open its first flagship outlet in India, becoming the latest global brand to tap into the country’s booming luxury market.

The store, located in financial hub Mumbai, will open early November with plans for another one in capital Delhi.

Nicolas Houzé, the executive chairman of Galeries Lafayette Group, called the launch “a defining moment” and “a new chapter” in its international journey. The store has a presence in eight countries at the moment.

Its debut in India comes at a time when the luxury market, currently worth some $17bn (£12.6) in 2024, is projected to touch $85bn by 2030.

The 130-year-old Parisian brand has partnered with the retail arm of the Indian conglomerate, the Aditya Birla Group, for its operations.

Located in the historic Fort neighbourhood of Mumbai, the store stretches across five levels, spanning 90,000 sq ft (8,300sqm) and is set to host more than 250 luxury brands from across the globe.

It will also offer private lounges and concierge services among other things.

“With one of the fastest-growing affluent populations in the world and a new generation of globally exposed consumers, the appetite for high-end experiences has never been stronger,” said Kumar Mangalam Birla, chairman of the Aditya Birla Group.

Demand for luxury goods in India – one of the fastest growing major economies in the world – is being driven by increasing wealth creation and a shift in consumer tastes for premium products.

The country’s billionaire count has crossed 350 according to a new rich list, while the number of Indians earning over $10,000 annually is expected to jump from 60 million to 100 million people by 2027, according to Kotak Securities, a broking house.

Many international retailers are making a beeline to tap into growing demand for luxury goods, with 27 new global brands arriving in the country in 2024, almost twice the number from the previous year.

But luxury still remains a niche consumption segment in the country, and even though India’s high-end market is thriving” the gap between aspiration and affordability remains quite wide”, according to Kotak Securities.

There’s a massive divide between India’s rich and poor, with income inequality only becoming more pronounced since the 2000s.

This has led to brands doubling down on selling premium goods catering to the wealthy, as demand for mass-market products remains weak.

A report earlier this year found that around a billion of India’s 1.4 billion people lacked any money to spend on discretionary goods or services.