Powered by the APIIC's plug-and-play infrastructure policy, Andhra Pradesh Government's initiative to establish 175 MSME parks - one in each Assembly constituency - is accelerating grassroots industrialisation and strengthening the State's industrial ecosystem.
The State is now set to launch one of India's largest energy and water efficiency programmes for MSMEs, aimed at promoting sustainable manufacturing, global technology adoption and resource-efficient operations.
Energy efficiency experts said Andhra Pradesh's partnership with Energy Efficiency Services Limited (EESL) under the Union Ministry of Power could become a model for other States by improving industrial competitiveness, reducing operational costs, creating green jobs and enhancing environmental sustainability.
The initiative aligns with the Centre's Raising and Accelerating MSME Performance (RAMP) Programme and the State's MSME and Entrepreneur Development Policy. As part of Chief Minister N. Chandrababu Naidu's vision for sustainable MSME growth, the Industries Department will organise the "MSME Growth Conclave" in Vijayawada on May 25, said Dr N. Yuvaraj, Secretary, Industries, Commerce and Food Processing Department. Andhra Pradesh currently has more than 21 lakh MSMEs contributing significantly to employment generation, regional economic growth and Gross State Domestic Product (GSDP). The manufacturing segment accounts for nearly 24 per cent of the sector with around five lakh units engaged in agro-based industries, apparel, textiles, food processing and dairy. Nearly 45 per cent of these enterprises are led by women entrepreneurs.
The MSME credit ecosystem has also expanded significantly, with institutional credit flow crossing `1.17 lakh crore during FY 2025-26. Under the Prime Minister's Employment Generation Programme (PMEGP), 6,193 enterprises were established, generating employment for 68,123 people with margin money assistance of `205.95 crore, placing Andhra Pradesh first among southern States.
The State has also launched the AP Chief Minister's Entrepreneurship Programme (AP-CMEP), a `300-crore credit-linked subsidy scheme targeting 3,500 MSMEs and creation of nearly 17,000 jobs.
A major highlight of the conclave will be the launch of the Energy and Water Efficiency Intervention Programme for MSMEs in partnership with EESL. The initiative will include energy and water audits, cluster mapping and diagnostic studies across 15 MSME clusters, benefiting over 1,000 enterprises.

