Trade deal with US to benefit Panipat exporters
Will have edge over China, Pakistan
Exporters in Panipat are set to benefit from the trade deal between India and the US. The US has agreed to lower tariffs to 18% from 50%, which had come into effect from August 27 last year. The trade deal also gives an edge to Indian exporters with regard to China, Pakistan and Bangladesh as they are facing more tariffs.
Panipat has an annual turnover of Rs 60,000 crore, of which around Rs 18,000 crore is generated by exports. While handloom and power-loom products are exported to almost all countries, nearly 60% business is with the US.
In April last year, US President Donald Trump had announced the imposition of 26% tariff on Indian goods. Later, it was negotiated up to 10%. But, he shocked exporters with the imposition of 25% tariff on India from August 1, and an additional 25% as penalty for importing Russian crude oil August 27.
The tariff setback was also evident at the world’s biggest textile trade fair, Heimtextil-2026, held in Germany in January, as the footfall of overseas buyers, especially US buyers, was very thin.
Ashok Gupta, vice-president, Panipat Exporters Association, said the trade deal would also boost the textile industry, as 60% business was with US markets.
Apart from it, the tariff was fixed at 18%, which would give an edge over other countries, he said.
Surender Mittal, an exporter, said the sentiments of the exporters as well as overseas buyers were positive. The industry had faced a tough time for around eight months, but now there was hope that the business would improve, he said.
Vinod Dhamija, chairman, Haryana Chamber of Commerce and Industries, Panipat chapter, said about 60% of Panipat’s export was hit due to 50% tariff, but with the reduced tariff, India would be at an advantage as China was facing 37% tariff, Pakistan 19% and Bangladesh 20%. However, it would be a challenge for the exporters to bring back their customers, he said.
Lalit Goel, chairman, Handloom Export Promotion Council, and president, Panipat Exporters Association, said, "It will certainly boost the textile industry. We are hoping that the exports, which were hit due to the tariff, will get back on track."
