India's home textile industry is weaving a promising narrative in FY2025, registering a striking 10 percent growth in exports during the first nine months (9M), a leap from the modest 3 percent seen in FY2024. This revival, according to a recent report by ICRA, is being fueled by robust global demand, restocking activities by major international retailers, and the strategic shift of global sourcing under the China Plus One policy.

As per projections, the industry’s revenue is poised to grow by 7–9 percent in FY2025 and maintain a steady climb of 6–8 per cent in FY2026. Operating margins are expected to stay healthy in the range of 13–15 percent, supported by efficient inventory liquidation and expanding vendor bases. This resurgence paints a positive outlook for India’s home textile sector, which had earlier faced disruptions due to global trade imbalances and pandemic-induced slowdowns.

The United States continues to be the cornerstone of India’s export market, contributing 59 percent in FY2024 and 56 percent during 9M FY2025. However, the path ahead isn’t without hurdles. Rising logistics costs could slightly compress margins, and the pace of growth remains vulnerable to tariff developments in the US and pending trade agreements with the UK and EU.

Among product categories, bed, bath, table linens, carpets, and floor coverings led the export boom with an impressive 13 percent year-on-year growth, reflecting a growing global preference for wellness and home aesthetics. In contrast, items like blankets and other furnishing textiles witnessed more moderate traction.

With the global retail sector on a recovery path and strategic trade realignments unfolding, India’s home textile sector appears well positioned to thread its way into new markets, reinforcing its reputation as a global hub of quality and creativity.