Panipat’s handloom industry is facing growing operational challenges. Several industrialists and exporters are now considering shifting their units to non-NCR districts of Uttar Pradesh.

The move comes amid concerns over NCR restrictions, water shortages and limited common industrial facilities. Officials from the Uttar Pradesh Industries Department have also approached Panipat industrialists with incentives and infrastructure support.

UP Offers Incentives to Panipat Industrialists

According to exporters, Uttar Pradesh is offering several incentives to attract new industrial units. These include capital subsidies for plant and machinery, land-cost support and exemptions from stamp and electricity duties.

Officials have also offered fixed power charges and employment subsidies. Freight support and common facilities are also part of the proposed incentives.

Lalit Goel, president of the Exporters’ Association, said Panipat industries face several challenges because of their location within the NCR.

Panipat Seeks Better Industrial Facilities

Panipat has an annual industrial turnover of around ₹65,000 crore. This includes about ₹20,000 crore in exports and ₹45,000 crore in domestic sales.

The city has more than 20,000 small and large industrial units. These units employ over four lakh people. Around 400 exporters sell products such as carpets, cushions, bed linen, blankets, curtains and bath mats in global markets.

Industry representatives said Panipat still lacks some key common facilities. These include zero liquid discharge, common boilers, reliable power supply and adequate water for dyeing operations.

Exporters Raise Water and Pollution Concerns

Rakesh Jain, vice-chairman of the Handloom Export Promotion Council, said water supply remains a major concern for the dyeing industry.

He also highlighted NCR-related pollution restrictions. The industry has sought zero liquid discharge and a common boiler for several years.

Industry representatives have urged the Haryana Government to address these concerns. They said the relocation of even a small share of exporters could affect Panipat’s industrial base.

Meanwhile, the Handloom Export Promotion Council has signed an MoU with Uttar Pradesh to organise an expo in the state. The event is expected to include overseas buyers and Panipat exporters.