Mumbai – According to a research this week by CRISIL Ratings (previously Credit Rating Information Services of India Limited), the home textile sector in India is expected to increase by 6% to 8% in terms of sales in fiscal year 2025.
Growth in the domestic market and “resilient” demand from the US market form the basis of the prediction. Alongside that growth, revenue rebounded by 9% to 10% in fiscal year 2024.
The analysis did not account for the possible effects of President-elect Donald Trump’s tariff proposals because it was released before the outcome of the U.S. presidential election was known.
Based on an analysis of 40 businesses, which accounted for 40–45% of the industry’s revenue, the CRISIL estimate was made. India’s whole home textile sector exports 70% to 75% of its domestic textile income, with the US taking 60% of the share. According to CRISIL, around 30% of all home textiles exported from India to the United States come from this country.
According to Mohit Makhija, senior director of CRISIL Ratings, “three factors will drive growth of the home textiles industry this fiscal year.”
He referenced :
- Normalized inventory levels at key U.S. retailers and resilient consumer spending.
- manufacturers’ ongoing emphasis on growing their home operations in India.
- According to Makhija, there is a good chance that local cotton prices will stay around those of other countries, “thereby maintaining the competitiveness of domestic enterprises.”
The research cautioned that the forecast may shift if there was a notable slowdown in the United States or if domestic cotton prices spiked higher than global prices. Additionally, “lingering logistical challenges” for exports from India were noted in the research.
Although a spike in supply from Brazil and the United States caused worldwide cotton prices to fall below domestic Indian prices from June to September of this year, CRISIL anticipates that the difference will close when India’s cotton season begins.
