AP targets 45 MSME clusters under Cluster Development Programme, aims to create 7,032 jobs

Minister for MSME, NRI Empowerment & Relations and SERP, Kondapalli Srinivas interacting with Hindus. File | Photo credit: KVS Giri

The Andhra Pradesh government unveiled an ambitious cluster-based development strategy for the micro, small and medium enterprises (MSME) sector, identifying 45 potential industrial clusters across the districts with an outlay of ₹200 crore to strengthen infrastructure, increase employment and boost regional economic growth.

Under the Andhra Pradesh Cluster Development Program (AP CDP), launched through GO Ms. No. 17 dated January 10, 2026, the state aims to set up Common Facility Centers (CFCs) to support small and medium enterprises through shared infrastructure, technology and services. The program will extend financial assistance up to 80% of the project cost of machinery, especially within MSME parks.

MSME Minister Kondapalli Srinivas told The Hindu that the scheme is expected to benefit 1,688 MSME units and create employment for nearly 7,032 people between 2026 and 2030.

The state has mapped strong area-specific industrial areas to create specialized clusters across three economic regions: Visakhapatnam, Amaravati and Tirupati Economic Regions. Areas of north coastal Andhra were earmarked for sectors such as cashew, mango jelly, polymers and packaging, printing, oil, jaggery, dairy, coconut sweets and automobiles. Central coastal Andhra areas focus on food processing, carpentry, stone sculpture, handloom weaving, engineering and agricultural implements.

Areas of Rayalaseema have been identified for rice mills, spices, leather puppets, wooden toys, power looms, kalamkari, wood carving, saree designing and stone processing to build local industrial ecosystems based on traditional strengths and market potential.

The initiative is expected to accelerate balanced industrial development and improve the competitiveness of small and medium enterprises in Andhra Pradesh.

Published – May 19, 2026 11:07 AM IST