More than 33000 small and medium scale industrial units manufacturing handloom products in Textile City Panipat doing annual business of value worth Rs 40 thousand crore, and also providing revenue to the government worth Rs 1500 crore every year towards tax to the state government and custom department in the centre need relief from the government demanding availability of tax-free raw material used in handloom industry, enabling increase their sale in domestic as well in export markets where they are facing tough competition with the handloom products manufacturers in China which are also flooded in our domestic markets.

Vinod Dhamija Chairman of Chamber of Commerce & Industry said that manufacturers of Panipat Handloom Industry should be provided relief by the government similar to this industry in China along with availability of tax-free raw material and rebate in custom duty on exports as being provided to the footwear industry in Agra manufacturing leather shoes enabling increase in the sale of Handloom products in the Textile City Panipat worth about Rs 10,000 crore.  

Among demand by the entrepreneurs manufacturing handloom products in Panipat included there should be no tax on the raw material used in manufacture of handloom products, Handloom Promotion Council should be strengthened by the government, Since Panipat comes under NCR having large number of restrictions applicable in the area from which this industrial town should be exempted with immediate effect.  They demanded installation of a common water treatment plant by the government enabling reuse of nearly 90% wastewater containing chemicals by the handloom units in the Textile City.