UK-India free trade deal brings cheer to Panipat textile industry

The announcement of a Free-Trade Agreement between the United Kingdom and India has brought cheer to industrialists, especially exporters, in Panipat as textile and handloom products would get duty-free access in the UK markets, ending the competition they had to face from Bangladesh and Pakistan.

The textile and handloom industry in Panipat, also famous as ‘Textile City’, has an annual turnover of over Rs 50,000 crore, with around Rs 20,000 crore from exports only. Handloom products, including bed sheets, cushion covers and door mats, are exported from Panipat to European countries, USA, Japan and Australia.

Panipat exports products worth around Rs 400 crore to the UK. With the free trade deal, the industrialists said their business would more than double in the coming years.

Vinod Dhamija, exporter and chairman, Haryana Chamber of Commerce and Industries, Panipat Chapter, welcomed the deal between India and the UK. The entire Europe and adjoining countries were disturbed for a long time due to a war between Russia and Ukraine, and the Free-Trade Agreement with the UK would bring in more opportunities for the Indian business houses, he said.

Lalit Goyal, chairman, Handloom Exports Promotion Council, and president, Panipat Exporters’ Association, said the exports would increase now. Earlier, a duty of 9% to 12% was levied on textile and handloom products exported from India, he said.

Garments, floor coverings, bath mats, bed sheets, towels, woollen bathmats and other textile products are exported to the UK. Earlier, the Indian industry had to face competition from Bangladesh and Pakistan as their products were duty-free.

“There is a good demand for Indian products in the UK and we hope it would grow further with this deal,” Goyal said. The export of several other products, including medicine, leather products, garments, chemicals, etc, would also increase after this agreement with the UK, he added.