India's Luxury Watch Market Sees Record Import Numbers, Despite Uncertainty Over GST Hikes

In a surprising turn, India has emerged as the fastest-growing market for luxury Swiss watches in the world, with imports worth ₹2,360 crore (CHF 250 million) in the first 11 months of 2024, registering a 27.6% growth from the same period last year.

The impressive numbers reflect the growing trend among affluent Indians to commission unique, handcrafted, luxury timepieces from top global watchmakers. For instance, a Maharashtra-based business family recently commissioned a custom-made grand fireplace clock worth ₹5-6 crore from a prestigious French watchmaker, while a Delhi-based connoisseur splurg ₹1.6 crore on a bespoke Ludovic Ballouard timepiece.

This surge in luxury watch imports can be attributed to various factors, including the growing interest among Indian buyers for exclusive and high-end watches. According To market expert Raahuul Kapoor of Luxury Ampersand Frolics, "the values of domestic luxury watch markets are rising on the back of high-priced watches, but volumes are coming from ₹50,000-3 lakh priced watches."

India's popularity as a luxury watch destination is further evident in its ranking for Swiss imports. In November 2024, India grew as the only top market post-year-on-year growth at 60%, followed by South Korea and Spain with 21.7% and 33.5% year-over-year growth, respectively.

While experts attribute this growth to various factors, Kapoor points out that micro-brands have become increasingly popular among luxury watch connoisseurs in India, who are looking for "legacy" watches that offer an artisanal touch. This trend is expected to continue with more independent brands flooding the Indian market to cater to the niche demand.

However, there are concerns over potential GST hikes, which could impact the industry's growth. Nitin Chainani, a Delhi-based bespoke timepiece advisor, expressed confidence in India and Switzerland's tie-up to phase out import tariffs on Swiss watches from 22% to 0%.

Meanwhile, Ashok Goel of Luxury Time Pvt. Ltd, a distributor of brands like Hublot, Tag Heuer, and Zenith, noted that "Swiss exports to India are showing world-beating growth in percentages, but the industry remains puzzled about where these numbers are coming from."

As concerns over potential GST hikes continue, luxury watch retailers are optimistic about the third quarter, which is expected to be influenced by major festive events and increased wedding season sales.