I went to this V&A exhibit a couple of weeks ago and really enjoyed it. For me, the most interesting parts were detailing the traditions to do with dying using natural dyes - the bolts of gorgeous indigo and turmeric dyed cloth are stunning - and the videos about cultivating different silk worms with examples of the differences in the woven cloth were fascinating.
Here's a quick round up of some Indian inspired bits and bobs I love
Botto is a textile art studio in Bombay, who do some interesting stuff - I love how this embroidery takes typical Bollywood colours and gives a contemporary twist with the background choice. The shapes and simplicity keep it feeling fresh too.
A super simple sari-as-curtain idea from the book 'Cloth'; gorgeous fabrics need no extra help to show off, and the light playing through them will just add an extra dimension. Now to get on ebay for some second hand saris to hang...
Kantha is a Bengali technique using running stitch to layer together fabrics (traditionally a way to use scraps or reuse part-worn cloth). Even the simplest patterns give a wonderful tactile quality to the cloth, as the stitches create little waves in the dense pad of fabric.
Aari embroidery, from Kashmir, is similar to punch hole embroidery, using a hook to create a sort of chain stitch. I love what the artist here has done combining curved and straight lines - there's a tutorial on her blog too