Just how lucrative the emerging market is can be gauged from the fact that a new mall, called the Emporio Mall, that has recently opened in New Delhi caters exclusively to international luxury brands - apart from top-end Indian fashion designers.

"India is a unique marketplace for luxury and its heritage and culture of exceptional objects goes back in an unbroken line to the Mughal era," says fashion editor of the International Herald Tribune (IHT) Suzy Menkes.

"Yet, at the same time, modern India brings a feisty, entrepreneurial spirit in both creating and selling fine goods. India also relies on its own exceptional craftsmanship, which, in turn, is used by international designers as an important resource," she added, ahead of the IHT's eight annual conference on "the global business of luxury" in the Indian capital Dec 3-4.

The conference that has earlier been held in Paris, Moscow, Istanbul, Dubai and Hong Kong will offer delegates an opportunity to debate the latest business developments and trends and help them with peers from around the world to build their business in this country.

Gone are the days when the chic set waited for a distant cousin to get that Louis Vuitton bag or those prized Jimmy Choo shoes. With the government allowing foreign single brands to open in India, luxury is now just a short drive away.

"The luxury market in India is just three years old because it was only in 2005 that the government changed its policy and allowed the entry of foreign single brands," said Ruchita Bharadwaj, a trend spotter.

Even so, the market for luxury accessories alone - watches, perfumes, bags and sunglasses - is estimated at close to Rs.400 million (approx $800,000).

"Luxury is not a new term for Indians as we have a history of Maharajas who used to splurge on luxury items," Bharadwaj maintained.

"In another 5-10 years, international luxury brands are going to leave a footmark in the Indian market as we all love to possess luxury items and make an exclusive collection of pricey possessions," she added.

Indians' first brush with international luxury items began in the mid-1990s when accessories like perfumes and sunglasses were initially introduced in the domestic market.

Since then, brands like Armani, Burberry, Christian Dior, Cartier, Canali, D&G (Dolce & Gabbana), Escada, Fendi, Hugo Boss, Jimmy Choo, Louis Vuitton, Paul Smith, Piguet, Roberto Cavalli, Tod's, Versace and many more have opened their flagship stores in India and experts say that many more will open in the future also.

Indian media houses are also capitalising on the luxury market.

The Hindustan Times newspaper conducts an annual luxury conclave that brings together the crème de la crème of international brands and also publishes the Splurge magazine confined entirely to luxury, as does the India Today group with its Spice magazine. That the concept of luxury is firmly ensconced in India can be gauged from the fact that the country supports a National Institute of Fashion Technology with 12 campuses spread across the country and a 160-member Fashion Design Council of India that annually stages two editions of the Wills Lifestyle India Fashion Week and the newly-introduced HDIL India Couture Week.

These apart, cosmetic brand Lakme also stages two editions of a fashion week while style impresario Sumeet Nair launched his annual edition of the Delhi Fashion Week in September.

Then, there are any number of fashion weeks and exhibitions catering specifically to weddings, apart from the numerous solo shows designers conduct.

With these luxury brands offering international products at international prices, the big question is: How many Indians can afford these pocket-pinching products?

Look at it this way: reliable estimates place the number of high net worth individuals (HNWIs) in India at upwards of 100,000. HNWIs are people with net financial assets of at least $1 million, excluding their primary residence and consumables.

Of the 100,000 HNWIs in India, an estimated 858 are categorised as ultra-HNWIs with more than $30 million in financial assets.

Of course, the global meltdown has had its impact on these individuals - but their pockets are still deep enough to splurge on luxury brands.

According to FDCI president Sunil Sethi, there is a definite market for luxury accessories largely due to the Indian tradition of gifting - with any occasion being an excuse to do so.

"The tradition of gifting is very important in India as we have so many occasions; so I believe that the accessory section will be a big hit in the Indian market," he maintained.

"People no more believe in gifting silver articles. What they love to gift is expensive watches and bags, so the accessory section of every luxury brand can easily survive in India," he added.

Bharadwaj agreed with him, saying the concept of "discreet luxury" is the next big thing in the Indian market.

"The accessories section of these international brands is definitely a hot property as people can dream of possessing one. Now, the preferences of the people are shifting to their homes and so discreet luxury is going to be the next big thing," she said.

According to designer Ritu Beri, "The rapidly changing economic situation in India has brought with it wide international exposure, huge disposable incomes and a craving for luxury. So, the Indian market makes business sense for these brands as they suffer from overexposure in their primary markets."