Andhra Pradesh: Lok Sabha Told 4,520 MSMEs Shut In AP Since 2024–25, 48,477 Jobs Lost
In the first quarter of 2026–27 alone, up to June 30, another 712 MSMEs closed, including 706 micro and six small enterprises: Reports
VISAKHAPATNAM: Andhra Pradesh has recorded closure of 4,520 micro, small, and medium enterprises (MSMEs) since the beginning of the 2024-25 financial year, resulting in the loss of 48,477 jobs, Union MSME minister of state Shobha Karandlaje informed the Lok Sabha.
According to the data presented by her in Parliament, 26.33 lakh MSMEs from AP have registered on the Udyam Registration Portal and the Udyam Assist Platform between April 2024 and June 2026. Despite this surge in registrations, the MSME ministry confirmed that thousands of units had ceased operations, leaving tens of thousands of workers without livelihoods.
Year-wise figures reveal a troubling trend. In 2024–25, 1,401 MSMEs shut down, including 1,388 micro enterprises and 13 small enterprises. The following year, closures rose sharply to 2,407 units, comprising 2,397 micro enterprises and 10 small enterprises.
In the first quarter of 2026–27 alone, up to June 30, another 712 MSMEs closed, including 706 micro and six small enterprises.
Notably, no medium enterprises are reported to have shut down during this period. While MPs sought national-level comparisons of closure rates, the ministry’s reply did not provide them, stating that only comparable data is available.
Concerns about specific sectors, such as granite polishing units, aquaculture processors, and handloom cooperatives in Anantapur and Kurnool districts, went unanswered, with no indication of a sector-specific vulnerability assessment.
Significantly, the Centre has ruled out any special relief package or restructuring facility for distressed MSMEs in Andhra Pradesh.
Instead, it pointed to existing schemes, particularly the Credit Guarantee Scheme implemented through the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). This scheme enables collateral-free loans to eligible micro and small enterprises.
According to official figures, Andhra Pradesh has benefited significantly from CGTMSE. Since its inception in 2000 and up to June 30, 2026, the scheme has extended over 10.2 lakh credit guarantees, covering loans worth ₹44,941 crore to micro and small enterprises in Andhra Pradesh.