New Delhi, Jan 28 (IANS): The Indian luxury market is expanding fast and would reach $18 billion mark by 2017 from its existing level of $14 billion, a joint study from an industry association and a private bank said Wednesday.

According to an Assocham and Yes Bank's market study, increasing brand awareness among the Indian youth and rising purchasing power of the upper class in tier II and III cities would lead to consumer spending touching $4.2 trillion by 2017.

Fashion, fine dining and automobiles are the primary components which would register the highest growth in the luxury segment.

The study also said global consumer spending, too, is on the rise, and is expected to reach $40 trillion by 2020, with an unprecedented growth of $12 trillion in a decade.

"The Indian luxury market is poised to expand three-fold in the next three years and the number of millionaires is expected to multiply three times in another five years," the association's secretary general D.S. Rawat said.

With the luxury market expected to grow at over 20 percent on a year-on-year basis, private equity investments in the luxury segment are expected to increase.