The impact of the ongoing turmoil over Telangana has spilled over to Gujarat, as the textile industry in Surat is making heavy losses everyday following the violent protests in coastal Andhra Pradesh.Surat’s textile industry is losing Rs 20-25 crores each day due to the strikes and violent protests in the region. Known as a hub for synthetic textiles, the Surat-based industry gets 20 per cent of its total annual business of Rs 40,000 crores from Andhra Pradesh alone.

Business has been affected for over a month, causing a loss of around Rs 600 crores just before the beginning of festivities.And as an expert pointed out, since the festive season is approaching, it is a peak time for business. Trade with Andhra Pradesh has almost stalled. The disturbance is also affecting consignments destined for Tamil Nadu, as Vijayawada is the major centre for warehousing and transit of goods.

Surat industries 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 textile players have also expressed uncertainty over the new taxes and laws that the new state will implement.

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 Goods and Services Tax (GST), but the local policies will matter said a leading textiles player in Surat.