GST 2.0 weaves festive demand for textile city

Owing to the festival season and the recently implemented GST reforms, Panipat industries are experiencing a significant boost in the domestic market.

Industries — including those manufacturing blankets, bedsheets, bathmats, carpets, and other products — are receiving substantial orders in comparison to previous years, with units running at full pace to fulfil demand. Globally known as ‘textile city’, Panipat, situated on National Highway-44, is a mere 90 km from national capital Delhi.

Panipat industries have an annual turnover of more than Rs 70,000 crore — Rs 20,000 crore of this can be attributed to exports, and Rs 50,000 crore to the domestic market.

Panipat exports had been significantly affected by US President Donald Trump’s tariffs; however, the domestic demand this season has revived hopes of good business.

Panipat has over 20,000 small and big industrial units, mushroomed not only on its roads, but also on the outskirts — in areas such as Bapoli, Israna, Madlauda, Samalkha, Nain, Sutana and Pardhana, which have been developed as large industrial zones.

The district has emerged as the world’s largest recycling hub, manufacturing yarn from discarded clothes coming in from various countries. The process uses no “chemical dyes” and does not waste water. The industry produces over 30 lakh kilograms of yarn every day by recycling discarded clothes.

Panipat-based industrialist Anil Gaba said, despite business being slow at the onset of the festive season, it is expected to be substantial this year. The impact of the GST reforms was also being seen, he added, stating it these would mitigate the effects of the “recession” this year.

Usually, customers arrived in August to place orders ahead of festivals, he noted.

However, this time around, due to the heavy monsoon, customers began arriving to the city later.

Industrialist Raju Chugh echoed similar sentiments, stating that the festive business season had shrunk from six months to only four.

Bapoli Industrial Zone president and All India Industries Association founder member Naveen Bansal said market sentiments were good this season.

Panipat was emerging as the ‘Manchester of textiles’ on the global map, Bansal claimed. Haryana Chamber of Commerce and Industries, Panipat chapter, chairman Vinod Dhamija said units manufacturing blankets, bedsheets, and carpets, among others, had received sizeable orders from the domestic market this year.