The Indian home textile industry is bracing for a 5–10% drop in revenue in the current fiscal year following the United States’ decision to impose steep 50% tariffs on select home textile products. These tariffs, which came into effect on August 27, 2025, are expected to significantly impact exporters, as the U.S. accounts for nearly 75% of India’s total home textile exports.
According to a report by CRISIL Ratings, the revenue decline will stem from reduced order volumes, as higher landed costs in the U.S. market could lead to lower demand. The analysis is based on a sample of around 40 home textile companies, representing 40–45% of the industry’s revenue. It also warns of a 200–250 basis point decline in operating profit margins, further straining the sector’s financial stability.
Although some relief may come from front-loaded exports earlier in the fiscal year, the impact of the tariff hike will likely intensify in the second half. Additionally, while rival exporters like China, Pakistan, and Turkey might not be fully equipped to capture India’s lost market share, the industry still faces significant headwinds.
To mitigate the damage, Indian exporters are looking to diversify their markets, targeting regions like the European Union and the United Kingdom. However, the transition will take time and may not fully offset the immediate losses in the U.S. market. Credit metrics could also weaken, especially for firms heavily reliant on U.
S. exports.
