Panipat’s export industry struggles: Festive sales plunge over 50%, Negative response

The export industry in Panipat, renowned as the ‘Textile City,’ is facing severe repercussions due to the poor response from international buyers. The ongoing festive season has not brought the anticipated success for exporters, with a decline in demand by more than 50% throughout the year. The export businesses, including textiles, threads, weaving, dyeing, and packaging, have also been adversely affected by nearly a 60% decrease in export trade compared to the previous year.
Panipat, known for its annual turnover of around 50,000 crore rupees, of which approximately 15,000 crores come from exports, is witnessing a challenging phase. An exporter shared that despite spending 22 days in Europe and holding 25 meetings with buyers, orders were never fulfilled. Another exporter mentioned receiving a negative response from buyers.
Lalit Goyal, President of the Panipat Exporters Association, stated that the slowdown in export trade began in the last quarter of the previous fiscal year and continues to persist. He noted that some new orders have been received this year from foreign buyers. However, the aftermath of the Russia-Ukraine conflict has heavily impacted international markets.
Raman Chhabra, President of the Young Entrepreneurs Association, highlighted the export industry in Panipat being in crisis for nearly a year, with no new orders in sight. The United States remains the largest buyer of Panipat’s handcrafted products, including home textiles and floor coverings, but growth in this sector has been sluggish. Chhabra noted that several companies have faced insolvency, and the high exchange rate has affected the export industry by almost 60%.