France and India have deepened their luxury-sector cooperation ahead of the anticipated EU-India free trade agreement, which would eliminate or reduce tariffs on 96.6 percent of EU goods exported to India. The diplomatic initiative, spearheaded by French trade officials and supported by LVMH and Kering, represents the most coordinated push yet by European luxury groups to access India’s rapidly expanding wealth base.
The timing is strategic. As China’s luxury consumption moderates and Western European markets mature, India represents the next demographic frontier for the industry. A middle class projected to reach 600 million by 2030, combined with a growing ultra-high-net-worth population, creates a demand profile that mirrors China’s trajectory from two decades ago. The question is whether infrastructure and retail readiness can match the ambition.
Beyond tariff reduction, the cooperation includes initiatives around skills transfer, with French houses investing in Indian craftsmanship and textile heritage. LVMH has already established partnerships with Indian textile cooperatives, and Kering has been exploring supply chain opportunities in the subcontinent. The cultural exchange dimension may prove as consequential as the trade liberalization.
The proposed trade agreement would phase these duties down over a multi-year timeline, with luxury goods among the categories prioritized for accelerated reduction. French luxury groups have been lobbying actively for the deal, viewing India as the most significant untapped market for high-end goods outside of China.
