Andhra Pradesh rolls out ₹200-crore MSME cluster development plan

The Andhra Pradesh government has unveiled an ambitious cluster-based development strategy for the Micro, Small and Medium Enterprises (MSME) sector, identifying 45 potential industrial clusters across districts with an outlay of ₹200 crore. The initiative aims to strengthen infrastructure, generate employment, and promote balanced regional economic growth.

Under the Andhra Pradesh Cluster Development Programme (AP CDP), notified through G.O. Ms No. 17 dated January 10, 2026, the State will establish Common Facility Centres (CFCs) to provide MSMEs with shared infrastructure, technology support, and common services. The programme also offers financial assistance of up to 80 per cent of the project cost for machinery, particularly in MSME parks.

MSME Minister Kondapalli Srinivas said that the initiative is expected to benefit 1,688 MSME units and generate employment for around 7,032 people between 2026 and 2030.

The State has mapped district-wise industrial strengths to develop specialised clusters across three economic regions — Visakhapatnam, Amaravati, and Tirupati. North Coastal Andhra districts have been identified for sectors such as cashew, mango jelly, polymers and packaging, printing, edible oils, jaggery, dairy, coconut sweets, and automobiles.

Central Coastal Andhra will focus on food processing, carpentry, stone carving, handlooms, engineering fabrication, and agricultural implements. Rayalaseema districts have been earmarked for rice mills, spices, leather puppets, wooden toys, power looms, Kalamkari textiles, wood carving, saree designing, and stone processing.

Officials stated that the initiative is designed to leverage traditional industrial strengths while building modern production ecosystems. The programme is expected to accelerate balanced industrialisation and enhance the competitiveness of MSMEs across the State.