AP Charges Up MSME Engine With ₹641-Cr Infra Push, 175-Park Vision
Andhra Pradesh is strengthening MSME infrastructure with ₹641.50 crore spent on parks and a plan to establish an MSME park or flatted factory in every constituency.
In a major push to transform Andhra Pradesh's grassroots industrial landscape, the government has unleashed a high-octane drive to strengthen the Micro, Small, and Medium Enterprises (MSME) sector.
Driven by the AP MSME & Entrepreneur Development Policy 4.0 (2024–29) and the flagship vision of ‘One Family, One Entrepreneur by 2030,’ the state is rapidly expanding industrial infrastructure across all 175 assembly constituencies.
Over 23 lakh MSME units operate in the state, with manufacturing accounting for 24 per cent (5 lakh units) across the textiles, food processing, apparel and agro-based industries sectors.
Nearly 45 per cent of these enterprises are led by women entrepreneurs.
To bolster this ecosystem, the state industrial infrastructure corporation has spent `641.50 crore on MSME Parks infrastructure between April 2024 and July 2026, combining APIIC funds, central MSE-CDP schemes, and state MSME allocations. Expenditures accelerated from `219.31 crore in FY 2024–25 to `329.54 crore in FY 2025–26.
Between June 2024 and September 2026, APIIC allotted land to 3,246 MSME units across 1,954.1 acres, carrying a proposed investment of `9,162 crore and employment potential for 1,15,958 persons. Commercial production has commenced in 37 units, while 466 units are under civil construction.
The policy prioritises social equity with SC entrepreneurs securing 33 per cent of land allotments since June 2024, followed by BCs (23), STs (8), and Others (39) per cent. Under Policy 4.0, land cost rebates for SC/ST entrepreneurs were increased to 75 per cent (up to `25 lakh), generating `79 crore in rebates across 1,243 allotments during 2024–26.
Under the 175 MSME Parks Programme, the government aims to set up an MSME park or Flatted Factory Complex in every constituency. To date, parks have been inaugurated or foundation stones laid in 138 constituencies (79 per cent coverage) across three phases, with the remaining 37 constituencies scheduled for September 2026.
Crucially, the programme extends industrial infrastructure to 40 out of 63 constituencies that historically lacked APIIC industrial parks.
On the ground, APIIC zonal teams resolved critical bottlenecks, including removing Section 22-A land restrictions in Tirupati, Prakasam, and Srikakulam, restoring power and water facilities in Koduru, Parawada, and Brahmanapalli, and achieving 100 per cent allotment in key parks like Palamaner and Amancherla Phase-I.
