Andhra Pradesh Launches Cluster Drive To Boost MSMEs

15 Jan 2026 CW Team

The state has around 1.965 million Udyam-registered MSMEs, more than 99 per cent of which are micro and small enterprises, with nearly 25 per cent engaged in manufacturing. The MSME sector contributes 28.3 per cent of Andhra Pradesh’s total exports, making it the second-largest driver of economic growth after agriculture. While coastal districts account for a higher share of capital-intensive MSMEs and exports, the Rayalaseema region has a greater concentration of labour-intensive micro enterprises.

The APCDP builds on a series of earlier initiatives, including the One Family One Enterprise programme, the creation of 175 MSME Parks—one in each Assembly constituency—and the Private Industrial Parks Policy offering plug-and-play infrastructure.

Under the new programme, the state will set up 45 Common Facility Centres across existing MSME clusters to support advanced manufacturing, testing, research and development, packaging and quality certification. The initiative is designed to improve productivity, product quality and energy efficiency through shared infrastructure and technology.

The programme is expected to generate direct employment for around 7,557 people by 2030. Of the 45 clusters, four will be developed in 2025–26, followed by 16 in 2026–27, 15 in 2027–28 and 10 in 2028–29. The total approved budget outlay stands at Rs 2 billion up to 2030.

Project costs will range from Rs 10 million to Rs 50 million and from Rs 50 million to Rs 100 million. The state government will contribute up to 90 per cent of the machinery cost, with the remaining share to be borne by beneficiary units through a special purpose vehicle. The AP MSME Development Corporation will act as the implementing agency.

The Chief Minister said the cluster-based approach would allow small manufacturers to collectively access modern technology and infrastructure, helping them improve product quality and scale up for global markets. The MSME minister added that the programme would enable micro and small enterprises to compete with larger industries and significantly expand their presence in domestic and international markets.

The Government of Andhra Pradesh on Thursday launched the Andhra Pradesh Cluster Development Programme (APCDP), a flagship initiative aimed at strengthening the competitiveness of micro and small enterprises and doubling the state’s export potential by 2030. The state has around 1.965 million Udyam-registered MSMEs, more than 99 per cent of which are micro and small enterprises, with nearly 25 per cent engaged in manufacturing. The MSME sector contributes 28.3 per cent of Andhra Pradesh’s total exports, making it the second-largest driver of economic growth after agriculture. While coastal districts account for a higher share of capital-intensive MSMEs and exports, the Rayalaseema region has a greater concentration of labour-intensive micro enterprises. The APCDP builds on a series of earlier initiatives, including the One Family One Enterprise programme, the creation of 175 MSME Parks—one in each Assembly constituency—and the Private Industrial Parks Policy offering plug-and-play infrastructure. Under the new programme, the state will set up 45 Common Facility Centres across existing MSME clusters to support advanced manufacturing, testing, research and development, packaging and quality certification. The initiative is designed to improve productivity, product quality and energy efficiency through shared infrastructure and technology. The programme is expected to generate direct employment for around 7,557 people by 2030. Of the 45 clusters, four will be developed in 2025–26, followed by 16 in 2026–27, 15 in 2027–28 and 10 in 2028–29. The total approved budget outlay stands at Rs 2 billion up to 2030. Project costs will range from Rs 10 million to Rs 50 million and from Rs 50 million to Rs 100 million. The state government will contribute up to 90 per cent of the machinery cost, with the remaining share to be borne by beneficiary units through a special purpose vehicle. The AP MSME Development Corporation will act as the implementing agency. The Chief Minister said the cluster-based approach would allow small manufacturers to collectively access modern technology and infrastructure, helping them improve product quality and scale up for global markets. The MSME minister added that the programme would enable micro and small enterprises to compete with larger industries and significantly expand their presence in domestic and international markets.

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