The story
Panipat's weavers made handloom durries and blankets for centuries. After 1947, refugee weavers set up looms, and from the 1980s the town started importing used woollen clothing and textile waste to spin cheap 'shoddy' yarn for blankets. This turned Panipat into one of the world's largest textile-recycling hubs and a big exporter of rugs, bath mats and home furnishings. Exports depend heavily on the US and European markets.
In numbers
Panipat generates over ₹1,30,000 crore in annual turnover, ₹30,000 crore in exports, and supports more than 400,000 livelihoods.
Foundation for MSME Clusters — Panipat Textile Recycling: Sustainability Readiness Report
Ways in for a newcomer
- Sorting and grading textile waste for recyclers
- Stitching and finishing home furnishings as job work
- Selling Panipat blankets and rugs to retailers and e-commerce
- Certified recycled-yarn supply to sustainable fashion brands
Problems the cluster faces
- Dependence on the US market and tariff shocks
- Effluent from dyeing units
- Competition from China in home textiles
- Labour shortages
Businesses to start here
Textile (Fabric Waste) Recycling →Recycled Wool Blanket Making →Towel Manufacturing →Bedsheet Weaving Unit (Power Loom) →Bed Linen Stitching Unit (Bed Sheets and Pillow Covers) →Home Furnishing Stitching Unit →Curtain Making →Woollen Durrie (Dari) Weaving →Handmade Carpet Weaving Unit →Yarn Twisting (Doubling) Job Work →