During the pandemic, the Indian home textile industry witnessed a boom in exports, reaching US $ 7.1 billion in the fiscal year 2022. However, this boom was followed by the industry being severely impacted by high prices on multiple fronts, from which it is just now starting to recover this year.
The nation’s home furnishings market is predicted to expand by 8–10 per cent in FY ’25 and is on a recovery path, according to a forecast by the credit rating organisation CareEdge Ratings.
China dominates the global market for home textiles (furniture), with India coming in second. However, the nation reached its pinnacle during the pandemic’s height, when demand skyrocketed and Western countries turned away from China as a source. While many businesses suffered during the COVID-19 pandemic, home textiles showed a 13 per cent YoY increase in FY ’21 and a peak in FY ’22.
But in 2023, some of these demands subsided, and the sector also suffered from a spike in cotton prices of Rs. 272/kg and increased freight expenses as a result of rerouting. Although this deflated the Indian home textile sector, by 2024 things are starting to stabilise.
This market segment is expected to expand in the future as a result of both an expanding domestic real estate industry driven by increased urbanisation and a strengthening export market. Furthermore, cotton saw a significant price correction starting in December 2022 as the world economy slowed and demand declined.
The price of cotton has since settled at around Rs 160–164/kg. The six major manufacturers, who account for almost 65 per cent of the market share, had notable growth spurred by domestic demand; their total operating income (TOI) increased by 10 per cent in FY ’24 after declining by 8 per cent in the previous fiscal year.
The US market is the main driver of the substantial rebound in the global market, which has experienced a significant increase following several quarters of depression. Nonetheless, China (35 per cent) continues to lead the export market in the United States, which is the biggest buyer of home textiles, followed by India (29 per cent) in second place.
Even though a rebound is anticipated, there are still issues with rising freight prices because of unstable geopolitical situations. The prolonged Red Sea issue has posed a huge obstacle, forcing Indian exporters to reroute 95 per cent of their vessels and approximately 4-5 times the increase in logistics costs, even though oil prices peaked in 2022 and have since drastically declined in 2024.
