Panipat textile exporters welcome tariff cut after India–US trade deal

Industrialists in Haryana’s Panipat district are celebrating the sharp reduction in US tariffs on Indian goods following the finalisation of the India–US trade agreement. The cut in reciprocal duties from 50% to 18% has brought much-needed relief to the city’s textile and handloom sector, which had been under severe pressure for months.

Exporters say the high tariffs had slowed production, reduced orders, and hurt profits. With the new deal in place, they believe demand from the United States will pick up again, helping factories return to normal operations and safeguarding thousands of jobs linked to the industry.

Panipat is widely known as a major hub for home furnishings and handloom products. Items such as blankets, carpets, rugs, bed linen, and towels made in the city are exported across the world. The United States is the single largest buyer of these products, making the tariff reduction especially significant for local exporters.

Why the tariff cut matters to Panipat

According to the Panipat Exporters Association, the city has more than 600 export-oriented units. Together, these units export goods worth nearly ₹18,000 crore every year to international markets. Almost half of this export value comes from shipments to the United States alone.

Last year, when the US imposed a 50% reciprocal tariff on Indian goods, Panipat’s exporters were hit hard. Exports from the city fell by nearly 20%, leading to lower production and financial stress across the sector. Many exporters were forced to sell their stock at heavy discounts or divert goods to other countries at lower prices.

Lalit Kumar Goel, chairman of the Handloom Export Promotion Council and president of the Panipat Exporters Association, said the US market is deeply connected to Panipat’s textile industry. He explained that almost every exporter in the city has business ties with American buyers. Apart from the US, Panipat exports to countries like Japan, the United Kingdom, West Asia, South Korea, and Australia, but none match the scale of the American market.

Goel said the announcement of the trade deal triggered a wave of excitement among industrialists. Exporters began exchanging congratulatory messages and phone calls soon after the news broke. He described the agreement as a turning point for an industry that had nearly come to a standstill due to high tariffs.

He also pointed out that while a recent trade pact with the European Union had raised hopes, the US deal carries far greater weight for Panipat. According to him, exporters suffered losses estimated between ₹3,000 crore and ₹4,000 crore during the high-tariff period. Large volumes of finished goods had to be sold at reduced rates, directly impacting profitability.

Industry confidence returns after deal

The reduction in tariffs is expected to bring fresh orders and restore confidence among exporters. Vibhu Paliwal, general secretary of the Panipat Exporters Association, said many small and medium units were pushed close to closure because they depended almost entirely on the US market.

Paliwal said exporters had waited a long time for the agreement and continued to operate despite mounting losses. He added that with the EU agreement already in place and now the US deal finalised, the industry feels more secure about the future. Exporters are hopeful that production levels will rise and employment opportunities will improve in the coming months.

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Industry leaders believe the tariff cut will help Panipat regain its lost momentum. Factories that had reduced working hours or slowed operations are expected to increase output again. This could benefit not just exporters, but also thousands of workers, including weavers, factory staff, transporters, and traders who depend on the textile sector.

The positive reaction in Panipat has also been echoed at the political level. Haryana chief minister Nayab Singh Saini welcomed the India–US trade agreement and called it a historic step in strengthening ties between the two countries. In a social media post, he said the deal reflects growing global trust in India’s economic growth and manufacturing capabilities.

Experts say the agreement could help Indian textiles become more competitive in the US market compared to products from other countries. Lower tariffs mean Indian goods can be priced more attractively, which may lead to higher demand and long-term contracts with American buyers.

For Panipat, which has built its identity around textiles and handlooms, the deal offers a chance to recover from a difficult period. Exporters believe that stable trade policies and supportive international agreements are crucial for sustaining growth in a global market that is often uncertain.

While challenges such as rising raw material costs and global competition remain, the tariff reduction has clearly lifted the mood in the industry. For now, Panipat’s exporters are hopeful that the India–US trade deal will mark the beginning of a stronger and more stable phase for the city’s textile sector.