Escalating tensions between Israel and Iran are further compounding the already significant challenges faced by textile exporters in Panipat. A cornerstone of India's home furnishings export sector, these companies were already grappling with the fallout from global trade disruptions and the ongoing Russia-Ukraine war. This latest conflict has injected further uncertainty, disrupted existing orders, and significantly slowed the inflow of new business, indicate local sources.
A city renowned for its home furnishing textile exports, Panipat recorded approximately $927 million in exports in 2021. The United States stands as Panipat's largest export market, followed by various European countries. The increasing geopolitical risks and associated tensions are directly impacting demand in these crucial markets. While Israel typically imports textiles valued between $59.9 million and $83.8 million annually from Panipat, direct trade with Iran is limited. However, broader regional instability is causing major logistical headaches and dampening overall market sentiment.
Recent US tariffs have introduced additional complications. While exporters initially received a three-month exemption for pending and shipped orders, buyers are now pushing for price renegotiations. Exporters are reportedly under pressure to slash prices by 5 per cent to 10 per cent or even more, resulting in substantial financial losses for many local businesses.
Industry representatives recently reported a sharp decline in orders. They fear an inability to meet their obligations while operating on severely diminished profit margins. The cumulative effects of global conflicts and shifts in trade policies are creating a seriously disruptive environment for international trade. This leaves Panipat's textile sector facing an unstable and strained export landscape.
