Home textile exports from India have fallen by almost 18 percent in the current fiscal year as compared to the previous fiscal year.

Demand for these products has slowed, particularly from the US and Europe.Home textiles are a significant contributor to the textile sector and have seen substantial growth, with exports increasing by 34 percent in fiscal year 2021 and further by 12 percent in fiscal year 2022, second only to readymade garments.

However, despite the initial growth, exports began to level off in the second quarter of fiscal year 2022 due to a combination of rising commodity inflation and the onset of a global recession, which have had a significant impact on growth.

The operating margins for the leading four listed home textile companies, which hold a market share of 35 percent in India’s home textile exports, have seen a decline on a quarterly basis and are predicted to decline further by 400 to 500 basis points in fiscal year 2023. The reduction in demand and increased operating costs due to decreased capacity utilisation have impacted margins despite a decrease in cotton prices.

However growth is expected to pick up in the second half of the fiscal year 2024 since the recessionary effect in the US may be out of the way by the second half of the fiscal year 2024.