India’s home textile market could grow by 6% to 8% in FY25: Crisil Ratings

India’s home textiles sector is expected to grow by between 6% and 8% in the 2025 financial year as US demand remains strong and the domestic market is expanding, according to ratings agency Crisil Ratings.

The 2024 financial year saw between 9% and 10% revenue growth in India’s home textile market, according to an analysis of 40 businesses in the sector by Crisil Ratings, ET Bureau reported. Home textiles businesses’ credit profiles are expected to remain stable and are supported by healthy cash accrual.  
 
“The domestic Indian market forms the remaining 25% to 30% of the overall industry’s revenue,” said Crisil Ratings’ director Gautam Shahi, ET Online reported. “The Indian home textiles market is largely unorganised and the organised players are making continuous efforts to expand their market share in India.”
 
The majority of the home textile industry’s income comes from exports so global economic trends have a significant impact on its performance. The US market makes up 60% of India’s total exports and its continuing resilience despite its own economic pressures is a positive sign for the sector.
 
“Healthy cash accrual is likely to reduce dependance on external debt for working capital, which will keep the total outside liabilities to tangible net worth ratio low at 0.6 to 0.7 times this fiscal,” said Crisil Ratings’ associate director Pranav Shandil.