Textiles like this one were made in numerous panels so that they could be used as a portable screen or wall inside a large building or tent or outside, to encircle an encampment.
The fine embroidery on this example, and its good condition, suggests that it was meant to be used indoors. It might have been used to line the inside of a tent. Magnificent tents were used by Mughal and Rajput nobles and royalty when on the move, hunting, on campaign or simply travelling between residences. While their outer fabrics were usually plain, they could be decorated inside with very beautiful and costly textiles, like this one.