30/09/2024
The Indian home textile market is poised for significant growth, with an estimated worth of $9.6 billion in 2024, projected to reach $15.36 billion by 2029, reflecting a compound annual growth rate (CAGR) of 9.84% between 2024 and 2029. This growth trajectory follows an upward trend, as the industry witnessed a valuation of $8.2 billion in 2021, marking a notable increase from $5 billion in 2018. India stands as the sixth largest contributor to the global textile and apparel market.
The home textiles sector in India holds a prominent position on the global stage, backed by robust manufacturing capabilities, a diverse range of products, and a rich raw material base. Domestic companies within this sector are strategically realigning their business models, moving away from traditional high-volume product categories like plain cotton bedsheets and terry towels, and embracing emerging trends that promise higher profitability and scalability.
Market intelligence and advisory firm Mordor Intelligence estimates the bed and bath linen market in India to be valued at Rs 526.6 billion for CY24, with expectations of a steady 8% CAGR growth to reach Rs 773.9 billion by CY29.
Recognizing the vital role played by these sectors in India’s export landscape, the government has implemented supportive measures such as the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme. Since its inception in January 2021, the RoDTEP scheme has disbursed support totaling Rs 420 billion across more than 10,500 export items. In the current fiscal year, the scheme has been allocated a budget of Rs 150.7 billion, with a further 10% increase projected for FY24-25.
In February 2024, the Ministry of Textiles extended the Rebate of State and Central Taxes and Levies (RoSCTL) scheme for an additional two years until March 31, 2026, focusing on readymade garments and made-ups. This initiative aims to offset state and central taxes and levies, supplementing the benefits offered under existing duty drawback schemes, thereby enhancing the export competitiveness of these sectors.
Furthermore, the government has approved the Production Linked Incentive (PLI) scheme for textiles, with a designated outlay of Rs 106.83 billion over a span of five years. This initiative seeks to stimulate the production of MMF apparel, MMF fabrics, and technical textile products in India, fostering scalability and competitiveness within the textile sector.
Under the PLI scheme, 64 applicants have been selected, with a proposed investment totaling Rs 197.98 billion. As per the latest quarterly review reports (QRRs) as of September 30, 2023, eligible investments amounting to Rs 21.19 billion have been made by 30 selected applicants. Notably, 12 of these selected applicants have commenced commercial production, achieving a turnover of Rs 5.20 billion, including exports worth Rs 810 million, and generating employment opportunities for 8,214 individuals.