Union Minister Manohar Lal Khattar has said that the recent Goods and Services Tax (GST) reforms will help reduce the impact of United States tariffs on Panipat’s textile industry. He noted that the restructuring of GST slabs would lower the prices of certain textile products, thereby boosting domestic demand and offsetting losses from reduced exports to the US.
Panipat, often referred to as India’s ‘Textile City’, has an estimated annual turnover of between Rs. 50,000 crore (US $ 5.63 billion) and Rs. 60,000 crore (US $ 6.76 billion), with exports contributing nearly Rs. 20,000 crore (US $ 2.25 billion). The city is a major hub for handloom products such as bed sheets, cushion covers and mats, which are exported to markets including the US, UK and Europe. US retail chains alone account for more than half of these exports.
The industry has faced significant challenges in recent years, first due to the Russia–Ukraine conflict and instability in West Asia, and later from the imposition of a 50% tariff on Indian goods by former US President Donald Trump.
Khattar acknowledged that business losses were inevitable but stressed that the Union government was committed to supporting the tariff-hit sector. He pointed to the GST reforms as one such measure.
He stated that if the industry faced constraints in exports, manufacturers could benefit from higher domestic sales, particularly as GST revisions had reduced the prices of some textile items. He further highlighted that the government’s push to promote ‘Swadeshi’ products would also contribute to strengthening the sector.
Khattar added that the primary goal of every business was to sell its products, even if it required adapting to circumstances.
