Panipat is a city of textiles and carpets. It is the biggest centre for quality blankets and carpets in India and has a handloom weaving industry. The “Achar Pachranga” is a well known Indian pickle produced since 1925. The company was brought to Panipat in 1947 after the partition of India. Panipat also has heavy industry, with a refinery of the Indian Oil Corporation, a National Thermal Power Corporation power plant and a National Fertilizers Limited plant.

Some salient features of industry in Panipat include:

* Three major public sector projects: the Indian Oil Corporation oil refinery, the National Fertilizers Limited plant and the thermal power station.
* Biggest centre in the country for producing shoddy (recycled) yarn, and a large consumer of rags for reprocessing.
* Biggest centre in the country for producing low priced blankets, a traditional supplier of barrack blankets to the armed forces.
* Biggest centre in the country engaged in export of cotton durries, made-ups, throws and mats.
* Samalkha, a small town near Panipat, is known for foundry work and supply of agricultural machinery to neighbouring Uttar Pradesh.

* The town has infrastructure such as rail, road and inland container depots well suited to industry and export.