Demand for carpets and rugs in India is forecast to grow 5.9 per cent per year to 120 million square meters in 2021, expanding faster than any other major nation worldwide. Growth will be driven by strong gains in construction activity, expanding the size of the country’s building stock. In addition, growth will be boosted by increased urbanization and modernization, which will reduce the share of the building stock that has unfinished flooring.
Market advances will spur growth in demand for all major carpet and rug types. Woven products will retain the largest share of demand, at 54 per cent of the total in 2021. Low-end woven area rugs are often used in rural areas where purchasers may not be able to afford fully finished floors. These and other trends are presented in Global Carpets & Rugs Market, a new study from The Freedonia Group, a Cleveland-based industry research firm.
Through 2021, the strongest growth in carpet and rug demand in India will occur in the transportation market. According to analyst Elliott Woo, “This market more than doubled in size between 2006 and 2016, and will continue to expand rapidly as India’s motor vehicle industry flourishes.†Rising construction activity will boost demand in both the residential and nonresidential markets. However, the nonresidential market will advance faster, benefiting from high levels of investment in commercial projects, such as Gujarat International Finance Tec-City, an under-construction development intended to be a hub for international financial business.