India’s home textile industry saw exports rise in FY25: ICRA

India’s home textile exports recorded a growth of over 10% in the first nine months of the 2025 financial year, up from around 3% in the previous year, according to a recent report by credit rating agency ICRA. The growth was attributed to improved global demand, vendor diversification initiatives, and restocking by retailers in key export markets.

The US remained the largest destination for Indian home textiles, accounting for 56% of total exports in the first nine months of the 2025 fiscal year, down slightly from 59% in the 2024 financial year, Apparel Resources reported. ICRA noted that the medium-term outlook remains tied to the resolution of tariff uncertainties and the progress of India’s free trade agreements with the EU and the UK.

Within product categories, carpets, floor coverings, and bed and bath linens grew by around 13% year-on-year, supported by increased consumer interest in home aesthetics. Other segments, including blankets and furnishing items, showed slower growth.

Despite weak US retail sales in the furniture and home furnishings segment during the 2024 calendar year, a recovery of 5.5% year on year was seen in the fourth quarter. Revenue for ICRA’s sample set of four companies, representing about half the industry, grew by 14% in the 2024 financial year, but slowed to 8% in the first nine months of the 2025 financial year. ICRA expects industry revenues to rise by between 7% and 9% in the 2025 fiscal year, though operating margins may dip by 100 to 150 basis points due to rising logistics and operational costs.