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

Business: India’s home textiles industry is likely to be between 6-8% in the fiscal 2025 with the domestic market expanding amid strong demand in the US, ratings agency Crisil Ratings said.

The revenue growth of the home textile market in India was between 9% and 10% in the 2024 financial year, according to an analysis by Crisil Ratings of 40 business firms in the sector reported to ET Bureau. Healthy cash accrual supports the stable credit profiles of home textile businesses.
The remaining 25% to 30% of the total industry’s revenue comes from the domestic Indian market,” said Gautam Shahi, director at Crisil Ratings, according to ET Online. “The Indian home textiles market is largely unorganized and the organized players are making continuous efforts to expand their market share in India.”.
The home textile industry earns most of its income from exports and is, thus, highly affected by world economic trends. Therefore, positive news is brought to this 60 percent of India’s total exports-the US market such heavy economic strain on their side.
Healthy cash accrual is likely to reduce dependence on external debt for working capital, which should keep the outside liabilities to tangible net worth ratio low at 0.6 to 0.7 times this fiscal,” said Crisil Ratings associate director Pranav Shandil.