Few of us need reminding that India is changing. We read about it almost every day. International companies are rushing to invest in it (and not just in call centres), the middle class is growing exponentially and the old India that I encountered when I first went there in 1983 is disappearing fast. What delighted me then were the ancient skills, the beautiful old textiles, the silverware, the intricate jewellery, the temple decorations and the carvings — and this is what I've gone back looking for ever since.

But each time I return I notice the difference — the saris and dhotis are vanishing; traditional jewellery is being replaced by modern pieces; Louis Vuitton, Prada et al are opening up, and the markets and little boutiques are no longer the only places in which to shop.

Modern India is emerging, and with it a wave of designers who take the old skills and marry them to contemporary needs. Its apotheosis is probably Deogarh Mahal, a hotel owned by the Poddar family, who took an elaborate 17th-century fort in the Aravalli hills and gave it the most austere, minimalist interiors imaginable. The combination — a modern aesthetic built into an ancient fort — is breathtaking. This gave clear notice to a world in love with India's ancient heritage that a new and exciting approach was emerging. At this year's Milan Furniture Fair, Doshi Levien, an Anglo-Indian design partnership, and Moroso, one of Italy's most innovative companies, exhibited a modern take on the traditional Indian charpoy, or day bed. Its equilibrium typified the work of many of the best young Indian designers.

The Conran Shop, which has long used India as a resource, mostly working with its designers to create individual pieces, is now bringing to the UK work that is created with its own home markets — albeit very modern markets — in mind. The best of these will be showcased in a selling exhibition, Rangoli: 14 Contemporary Indian Designers is at the Conran Shop, 81 Fulham Road, London SW3 (020-7589 7401).

To anybody who loves India it will offer a new perspective on what to look for there.

Some of the most beautiful pieces are the textiles — Aditya Pande's exquisite hand-drawn silk cotton quilts, Abraham & Thakore's bed and cushion covers in black and white cotton ikat, and Neeru Kumar's Kantha quilts, which use traditional running-stitch embroidery updated to create individual, contemporary pieces. But there's much more than textiles: two glass-blowing artists, Prateek Jain and Gautam Seth, have produced some extraordinary sculptures of tulips and lotuses — the three tall lotuses on a single stem making a particularly dramatic statement — while their lanterns pay homage to the traditional Indian love of candlelight.

Many of the designers clearly draw inspiration from temple architecture and accessories — Vibhor Sogani, for instance, makes huge stainless-steel bowls, sometimes with a floating ball, as well as a miniature stone-stepped well with concentric circles. These are glorious sculptural pieces with which many grand hotel groups (Park Hyatt for one) have adorned their entrances.

There'll also be some clothing ranges — Rajesh Pratap Singh's lovely kimono robes being among the most engaging, although Rohit Bal takes more familiar Indian motifs, such as beading, embroidery and silver and gold thread, and works them into kimonos, throws and bags. Finally, don't miss the work of Manish Arora, whose vivid take on ancient Indian themes (such as his bright pink rug, with huge Buddha face) is indubitably modern, but also joyous and vibrant.

Another insight into what Indian design is up to can be found in Henry Wilson's sumptuous book, India Contemporary, which is filled with interiors that marry the sub-continent's sensibility with up-to-the-minute style. It's published by Thames & Hudson at £24.95.

Times recommends

• Interior design: It's time to end our craze for open-plan living
• How to make cool bedrooms for kids
• Inside Zaha Hadid's East London apartment