Sector Sees Renewed Momentum Backed by China Plus One Strategy and Retail Inventory Rebuild.
India’s home textile industry is witnessing a strong rebound, with exports rising approximately 10% in the first nine months of FY2025—up from a modest 3% in FY2024. This growth, as highlighted in a recent report by ICRA, is driven by a confluence of favorable global trends, including sustained demand, strategic vendor diversification under the China Plus One policy, and restocking efforts by major international retailers.
ICRA estimates that industry revenues are likely to increase by 7–9% in FY2025 and 6–8% in FY2026. Operating profit margins are expected to remain healthy, in the range of 13–15%, indicating continued strength in the sector’s fundamentals. Aided by ongoing inventory clearance at the retail end and shifting sourcing strategies, the momentum is projected to continue in the medium term.
The United States continues to be India’s top export destination, accounting for 56% of total home textile exports in the first nine months of FY2025, slightly down from 59% in FY2024. Despite this dominance, future growth will depend on tariff changes in the US and progress in free trade negotiations with the UK and EU.
Among product categories, carpets and floor coverings, along with bed, table, toilet, and kitchen linens, posted an impressive 13% year-on-year growth in 9M FY2025. The uptick is attributed to rising consumer preference for home comfort and aesthetics. In contrast, items like blankets and general furnishings witnessed more subdued demand.
As India’s textile sector continues to pivot toward global competitiveness, the home textiles segment remains a vital pillar of export-led growth—poised to benefit from both policy support and market realignments.
