Ponduru Khadi, renowned for its fine hand-spun fabric, is poised for a significant transformation with plans for a Khadi cluster at the Ponduru Mandal headquarters in Srikakulam district.

The Andhra Pradesh government is spearheading the project, which is expected to cost Rs 100 crore, aimed at upgrading infrastructure and elevating the global brand value of Ponduru Khadi. In December 2025, the khadi received a Geographical Indication (GI) tag, recognising its unique craftsmanship and hand-spun khadi up to 100 count. The TDP-led NDA coalition government is renewing its focus on the historic legacy of Ponduru Khadi, aiming to raise its standards to international levels. To support this, the state plans to establish a Khadi-Khaddar cluster with modern manufacturing technology, advanced artisan training programs, and global marketing facilities.

Koona Ravi Kumar, Amadalavalasa MLA and Public Undertakings Committee chairman, visited the site and instructed district officials to expedite the establishment of the cluster, which will include design banks and advanced printing units to help artisans access international markets.