In the late 19th century, Indian maharajas discovered a Parisian designer called Louis Vuitton and flooded his small factory with orders for bespoke Rolls-Royce interiors , leather picnic baskets and trendy bags for polo clubs. But after independence, when Indian princes lost much of their wealth, the orders dried up. Then, in 2002, LVMH, the world's largest luxury goods group, made a triumphant return to India, opening a boutique in Delhi and another in Mumbai in 2004. Its focus was on the new breed of maharajah produced by India's liberalized economy: flush, flash, and growing. Other purveyors of opulence followed, from Chanel to Bulgari. A multitude of fashion brands have announced plans to open stores in India in recent months, including Dolce & Gabbana, Hermès, Jimmy Choo and Gucci. And Indian women will soon be invited to spend over $100 on bras made by La Perla, an Italian lingerie company. Only a small portion, of course, will. But it is India's future prospects that excite the luxury giants. According to American Express, a financial services company, India has fewer than 100,000 dollar millionaires in a billion-plus population. This number is expected to grow 12.8% per year for the next three years. The long-term rise of India's middle class, meanwhile, has been charted by the McKinsey Global Institute, which predicts that average incomes will triple by 2025, lifting nearly 300 million Indians out of poverty and causing the middle class grows more than ten times. to 583 million. In short, the demand for all types of consumer products is about to increase. And although foreign investment restrictions prevent retail giants like Wal-Mart and Tesco from directly entering India, different rules apply to companies that sell their products under a single brand, as goods companies tend to do luxury. Since January 2006 they can participate up to 51% in Indian joint ventures. India is also an attractive market for luxury goods because, unlike China, it does not have a thriving counterfeiting industry. Credit is becoming more readily available. And later this year, Vogue, a fashion magazine, will launch an Indian edition. However, barriers to growth remain. High import duties make luxury goods expensive. Rich Indians tend to travel a lot and may simply buy elsewhere. Finding suitable commercial spaces is also a headache. So far, most designer boutiques are located in five-star hotels. But things are changing. Later this year Emporio, a new luxury goods mall, will open in a prosperous neighborhood in south Delhi.