Andhra textile industry expected to face US tariff impact.
2025-08-12 11:32:25
US duty impacts Andhra textiles
Beginning 27th August, Indian exporters must choose whether to continue exporting to the US in spite of the high tariff or to halt exports and search for other markets abroad. The US administration, led by President Donald Trump, has imposed a 50% tariff on textiles being imported from India. However, it will take time to build other export markets.
AP Textiles Mills Association vice president Sadineni Koteswara Rao stated that, after agriculture, the textile industry is the largest source of employment. He noted that the sector is expected to face a significant impact due to the US tariffs and emphasised the need for the Andhra Pradesh Government to step in with support measures. These, he suggested, should include providing captive power and clearing arrears to help keep the industry viable in the state.
Andhra Pradesh’s textile sector is reeling under uncertainty, with 30–35 of the state’s 100-plus spinning mills already shutting down. The primary cause is the steep rise in power tariffs which now account for nearly 53% of production costs, pushing many units to the brink of closure.
Industry stakeholders are urging the State Government to restore the power tariff policy that was in force between 2015 and 2020. They are also seeking permission to establish captive power plants, particularly in upland districts such as Kurnool and Anantapur in the Rayalaseema region, enabling them to generate their own electricity and channel surplus power to the state grid.
In addition, stakeholders are pressing for the release of pending incentives — including power subsidies, bank loan interest subsidies, and capital subsidies — amounting to Rs. 11,000 crore (US $ 1.25 billion). They believe this support is critical to restoring viability to the sector.
These concerns were presented to Chief Minister N. Chandrababu Naidu around four months ago, prompting him to instruct the Chief Secretary to form a committee to study the matter. However, the committee has yet to hold discussions with industry representatives.
