 "Stir takes a toll on Surat textiles industry")
The impact of the ongoing turmoil over Telangana has spilled over to Gujarat as the textile industry in Surat is making heavy losses every day following the violent protests in coastal Andhra Pradesh.
With every passing day of strikes and violent protests in the region, Surat's textiles industry is losing Rs 20-25 crore each day. Known as a hub for synthetic textiles, the Surat-based industry gets 20 per cent of its total annual business of Rs 40,000 crore from Andhra Pradesh alone.
According to sources, business has been affected for over a month now, thereby causing a loss to the tune of Rs 600 crore just before the beginning of festivities.
Industries here supply synthetic fabric including dress materials, saris and home textiles to the customers in Andhra Pradesh as well as some other parts of South India. Further, the players have also expressed uncertainty over the new taxes and laws that the new state will implement.
"In the long-run, policies of the newly-created state will play a crucial role. Telangana, being the heart of the cotton producing region in Andhra Pradesh, has an advantage to develop its own textile industry. This might pose a challenge for suppliers in Gujarat," said Ajoy Bhattacharya, past president, South Gujarat Chamber of Commerce and Industry. The industry being labour-intensive would be politically more sensitive than other sectors, he added. Traders are cautious about making business strategies as uncertainty continues to linger over the prospects of trade with Telangana and Seemandhra.
"The new state's taxes and policies will be crucial. No doubt that in some time, there will be a uniform taxation in the form of GST, but the local policies will matter," said Pramod Chaudhary, a textiles player in Surat.
With every passing day of strikes and violent protests in the region, Surat's textiles industry is losing Rs 20-25 crore each day. Known as a hub for synthetic textiles, the Surat-based industry gets 20 per cent of its total annual business of Rs 40,000 crore from Andhra Pradesh alone.
According to sources, business has been affected for over a month now, thereby causing a loss to the tune of Rs 600 crore just before the beginning of festivities.
Also Read
"Since the festive season is approaching, it is a peak time for business. Trade with AP is almost stalled. The disturbance is also affecting consignments destined for Tamil Nadu as Vijayawada is the major centre for warehousing and transit of goods," said Arun Jariwala, an industry expert and trader in Surat.
Industries here supply synthetic fabric including dress materials, saris and home textiles to the customers in Andhra Pradesh as well as some other parts of South India. Further, the players have also expressed uncertainty over the new taxes and laws that the new state will implement.
"In the long-run, policies of the newly-created state will play a crucial role. Telangana, being the heart of the cotton producing region in Andhra Pradesh, has an advantage to develop its own textile industry. This might pose a challenge for suppliers in Gujarat," said Ajoy Bhattacharya, past president, South Gujarat Chamber of Commerce and Industry. The industry being labour-intensive would be politically more sensitive than other sectors, he added. Traders are cautious about making business strategies as uncertainty continues to linger over the prospects of trade with Telangana and Seemandhra.
"The new state's taxes and policies will be crucial. No doubt that in some time, there will be a uniform taxation in the form of GST, but the local policies will matter," said Pramod Chaudhary, a textiles player in Surat.