Indian Home Textiles’ Big Hit
As global buyers seek alternative sourcing destinations beyond China, Divya Shetty explores how India is solidifying its position as a key player in the global home textiles market by ensuring consistent quality, timely delivery, and compliance with international standards.
The Indian home textile industry has performed significantly better in FY 2025 as compare to FY 2024, with export growth jumping from ~3 per cent to ~10 per cent, and total revenue also seeing a healthy rebound. The Indian home textile sector is currently in an expansion phase, marked by robust domestic growth as well as a steady influx of imports. This growth is fuelled by rising consumer demand, an increasing focus on home aesthetics, and an evolving global export market.
The global home textiles market is undergoing a clear transformation, driven by both material innovation and shifting consumer expectations. Domestically, there is growing demand for functionality-led products — from anti-microbial bedsheets to easy-care drapes — especially in urban and semi-urban households. Consumers are seeking textiles that combine aesthetic appeal with performance and sustainability.
Caption for the image: Figure 1: Market shares of categories within the home textile industrySource: Wazir Advisors, Systematix Institutional ResearchRohit Khemka, Founder, RR Décor, says,“The Indian home textiles industry stands at a balancing point between legacy and reinvention. While export momentum has slowed in some quarters, the domestic market continues to evolve, driven by a growing awareness of design, sustainability, and personal living spaces. There’s more curiosity among consumers, but also more scrutiny — people want aesthetics with accountability
The booming Indian real estate market, particularly in metro cities and tier 2 and 3 cities, is driving significant demand for home textiles. New residential and commercial projects are creating fresh opportunities for suppliers of home furnishings, from rugs to curtains and beyond.
- Smriti Choudhary, Brand Director – Cocoon Fine Rugs
“Internationally, we’re seeing a noticeable shift from natural fibres like cotton to man-made and cellulosic alternatives (MMF/MMCF). These fibres allow for greater versatility, faster production cycles, and a broader design palette — particularly in categories like upholstery, blankets, and technical fabrics. At the same time, sustainability remains a defining priority. Buyers are increasingly evaluating products not just by look or price, but by how ethically and efficiently they were made,” states Suryadeb Mukherjee, Principal Consultant, Gherzi.
In the home textiles market, some of the most popular categories include bed linens, curtains, upholstery, and rugs. Bedding sets, pillow covers, and comforters are in high demand due to their comfort and aesthetic appeal. Additionally, table linens, kitchen textiles, and bath towels play a significant role in both functionality and design, reflecting India’s diverse cultural influences. (see Figure 1)
The growth of e-commerce platforms has significantly transformed India’s home textile market. Online retail offers consumers greater convenience, wider product variety, and competitive pricing, making it an increasingly preferred shopping channel. Additionally, e-commerce has lowered entry barriers for smaller and niche brands, boosting market competition and encouraging innovation.
“The Indian home textile landscape is currently experiencing a strong upward trajectory. There’s a noticeable surge in both domestic consumption and selective import activity. This momentum is largely driven by consumers becoming more mindful of their home environments, paired with a steady evolution in the international demand for Indian-made home furnishings,” states, Anushka Ahuja, Co-Founder, Studio by Agni.
While revised tariffs can open up a margin advantage, they also invite newer entrants and increased competition, especially from countries in Southeast Asia. The opportunity lies in differentiation — in materials, in stories, and in processes that reflect both resilience and refinement.
Rohit Khemka, Founder, RR Décor
Table 1: proportional share of each commodity in the global export market.
Source: UN Comtrade Database
Recent trends
India’s home textile sector is undergoing a dynamic transformation, driven by rising eco‑awareness, premiumization, and digital adoption. Consumers are increasingly opting for sustainable fabrics like organic cotton, bamboo, hemp, and recycled fibres, prompting manufacturers to invest in waterless dyeing, zero‑liquid discharge systems, and green production processes. The premium and artisanal segment is also flourishing—luxury bed linens, silk drapes, handcrafted rugs, and limited‑edition collections are gaining traction among affluent buyers.
Another major driver is e‑commerce and digitalization, which has broadened market access, fostered niche brand growth, and enabled personalized offerings, while technologies like AI, automation, digital printing, and smart textiles are enhancing efficiency and innovation.
Smriti Choudhary, Brand Director – Cocoon Fine Rugs, informs thatrecent trends include a shift towards minimalist designs, innovative use of colour palettes, and a growing preference for sustainable and eco-friendly materials. Domestically, there’s a rising appetite for contemporary aesthetics, while internationally, emphasis on quality craftsmanship and customization is gaining momentum.
The market is witnessing a clear shift towards cleaner, understated designs along with experimental colour schemes that reflect individual style. Sustainability continues to dominate conversations, with an increasing number of brands opting for organic and earth-friendly materials.
Anushka Ahuja, Co Founder – Studio by Agni
There’s a visible move towards conscious consumption — Linen weaves, and traceable production processes. Minimalism with a tactile warmth is taking precedence over loud motifs. Internationally, buyers are leaning into smaller, well-crafted batches over mass production. Domestically, homes are becoming more personal, layered, and thoughtful — textiles are no longer just functional, they tell a story,” explains Khemka.
Home textiles are not isolated from the broader trends seen in the apparel or textile industry. There’s a growing awareness around sustainability and a sense of responsibility regarding how textiles are being manufactured. While people are becoming more conscious of these issues, they are still often reluctant to pay a premium for sustainability.
Ashish Kumar, CEO and Wholetime Director, Sutlej Textiles and Industries Limited (K K Birla Group), adds, “At the same time, there’s a clear trend toward customization. Consumers increasingly want products that are unique—what they have, others shouldn’t—and they are willing to pay more for that exclusivity, as long as they perceive real value in it. Our overarching theme is about “defining you”—understanding how individuals see things and exploring how we can collaborate or co-create with them for their entire living space. So, key elements such as sustainability, co-creation, customization, and the perceived value offered will play an important role going forward. And the same applies to the home textile sector.”
The market is witnessing a clear shift towards cleaner, understated designs along with experimental colour schemes that reflect individual style. While Indian consumers are gravitating toward sleek, modern decor, global buyers are showing renewed interest in tailored, high-quality pieces with a strong design narrative.
Key challenges India’s home textiles industry is facing several challenges that hinder its global competitiveness and growth potential. Rising input costs, particularly for cotton and synthetic fibres, have put pressure on manufacturers’ margins. Global competition from low-cost producers like Bangladesh and Vietnam further intensifies the challenge. Domestically, the industry remains fragmented, with many small units lacking modern infrastructure, which impacts quality and delivery timelines.
One of the most pressing challenges is labour availability, especially in key textile hubs. While India has the demographic advantage, retaining skilled labour remains difficult due to changing aspirations, migration patterns, and inadequate workforce infrastructure.
Suryadeb Mukherjee, Principal Consultant, Gherzi
According to Mukherjee, “One of the most pressing challenges is labour availability, especially in key textile hubs. While India has the demographic advantage, retaining skilled labour remains difficult due to changing aspirations, migration patterns, and inadequate workforce infrastructure. Secondly, raw material cost volatility — particularly for cotton and synthetic blends — continues to pressure margins. This is compounded by logistics uncertainties and compliance expectations from international buyers around traceability, emissions, and sustainable sourcing. Lastly, many MSME manufacturers are still adapting to evolving global design sensibilities and technical standards — which requires investment in R&D, finishing capabilities, and fibre innovation.”
Logistical inefficiencies and port delays continue to affect export performance. Regulatory hurdles, including complex labour laws and strict environmental compliance standards, add to operational costs. Many exporters also struggle with a shortage of skilled labour and limited adoption of advanced technology such as automation and digital printing. Moreover, small and mid-sized players face financial uncertainties, including delayed payments and risks of fraud. Addressing these structural issues through policy reforms, infrastructure upgrades, skill development, and technology adoption is essential for the industry to scale up and compete effectively in global markets.
Khemka mentions, “Uneven pace of digital integration are pressing concerns. Additionally, there’s a skill gap at the artisanal and design levels that often goes unspoken. Many brands are struggling to balance scale with craftsmanship — a nuance that’s critical in textiles.”
Real estate boom impact
The real estate sector has a direct and significant impact on the home textiles market in India. As residential and commercial property development increases, so does the demand for home furnishing products such as curtains, bed linens, towels, rugs, and upholstery. A booming real estate market, especially in urban centres, drives purchases for new homes, rentals, and interior décor upgrades, creating consistent demand for home textiles.
“There’s a strong correlation between real estate expansion and demand for home textiles. As urban centres and emerging towns witness a rise in new residential and commercial developments, the need for quality home furnishings be it curtains, upholstery, or rugs continues to grow, offering substantial opportunities for suppliers,” equips Ahuja.
New homeowners and renters typically invest in home improvement and furnishing, which boosts retail and online sales of home textile products. Additionally, growth in sectors like hospitality (hotels, serviced apartments) and real estate-driven tourism infrastructure leads to bulk demand from institutional buyers.
Additionally, the market is experiencing significant demand not just from metropolitan areas, but increasingly from tier 2 and tier 3 cities. “The booming Indian real estate market, particularly in metro cities and tier 2 and 3 cities, is driving significant demand for home textiles. New residential and commercial projects are creating fresh opportunities for suppliers of home furnishings, from rugs to curtains and beyond,” comments Choudhary.
Innovation and sustainability will be key. Becoming a full-solution provider—rather than just a part of the global supply chain—is what will set India apart. That’s the path that will ultimately help us scale and grow our volumes effectively.
Ashish Kumar, CEO and Wholetime Director, Sutlej Textiles and Industries Limited (K K Birla Group)
Geopolitical ripple effects
The UK–India Free Trade Agreement, set to take effect in 2026, is poised to significantly benefit India’s home textiles industry. By eliminating tariffs on a wide range of textile products—including bed linens, towels, and curtains—Indian exporters gain a strong price advantage in the UK market, previously hindered by 8–12 per cent duties.
This duty-free access is expected to double home textile exports to the UK over the next five to six years. Traditional textile hubs like Panipat, Tiruppur, and Surat stand to benefit the most, especially small and mid-sized enterprises. The agreement also opens doors for Indian manufacturers to tap into the UK’s premium and sustainable textile segments, which are growing rapidly. In addition, it encourages cross-border partnerships in design and distribution, helping Indian brands enhance their global presence. Overall, the FTA strengthens India’s competitive edge in one of its key export markets.
“The FTA could simplify access and create a more level playing field in the UK market, particularly for mid-sized Indian brands who rely on direct trade. If implemented thoughtfully, it may also reduce logistics-related costs and encourage collaborations with British design houses. That said, clarity and consistency in policy execution will be key.” States Khemka.
The FTA could enable smoother regulatory compliance, faster clearances, and possibly support for textile-specific skill or innovation collaborations. For Indian exporters focused on premium or design-driven collections, the UK offers a discerning audience, and lower entry barriers could open up new retail and B2B opportunities.
While some welcome the US revised tariff rates, seeing them as an opportunity to attract orders away from competitors and redirect business to India, others remain concerned about the potential outcomes and long-term implications.
“While it’s premature to determine the long-term effects, the revisions could work in India’s favour if leveraged strategically. There’s potential for Indian exporters to strengthen their foothold, especially if they can navigate the shifting dynamics faster than competitors from other regions,” quotes Ahuja.
Revised tariffs can also open up a margin advantage, they may invite newer entrants and increased competition, especially from countries in Southeast Asia. The opportunity lies in differentiation — in materials, in stories, and in processes that reflect both resilience and refinement.
According to Mukherjee, it’s both — an opportunity and a test. “If certain countries face increased tariffs, India could benefit from sourcing realignments, especially in home textiles where we already enjoy strong footing in the US market. However, this also means steeper competition from peers like Vietnam, Turkey, and Bangladesh, who may aggressively price or reposition themselves to fill the same gap. To truly leverage this window, Indian exporters need to double down on agility, fibre diversification (beyond cotton), and value-added offerings like sustainable certifications or design-led collections.”
New paths emerging
The Indian home textiles industry presents a wide array of growth opportunities, both domestically and globally. As one of the largest producers of cotton and other natural fibers, India enjoys a strong raw material base, which gives it a competitive edge in the manufacturing of high-quality home textiles such as bed linens, curtains, towels, and rugs. The rise in urbanization, increasing disposable incomes, and changing lifestyle preferences among Indian consumers have led to a surge in demand for premium and stylish home décor products.
Additionally, the government’s initiatives like the Production Linked Incentive (PLI) scheme and the development of mega textile parks are aimed at boosting infrastructure, innovation, and exports in the sector. On the global front, India is one of the top exporters of home textiles, with major markets including the United States, Europe, and the Middle East. The growing preference for sustainable and eco-friendly products further positions India favorably, given its capability to produce organic and environment-friendly textiles. E-commerce and digital platforms have also created new avenues for small and medium enterprises to reach broader markets, especially during the post-pandemic digital shift. Collaborations with global brands, increased investment in design and R&D, and the adoption of smart textiles and automation offer additional momentum.
As global buyers seek alternative sourcing destinations beyond China, India has the opportunity to solidify its position as a key player in the global home textiles market by ensuring consistent quality, timely delivery, and compliance with international standards. In summary, the Indian home textiles industry stands at a promising juncture with ample opportunities driven by both market demand and supportive policies.
