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 at an outlay of ₹200 crore to strengthen infrastructure, boost employment, and promote regional economic growth.

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

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

The State has mapped district-specific industrial strengths to develop specialised clusters across three economic regions: Visakhapatnam, Amaravati, and Tirupati Economic Regions. North coastal Andhra districts have been earmarked for sectors such as cashew, mango jelly, polymer and packaging, printing, oil, jaggery, dairy, coconut sweets, and automobiles. Central coastal Andhra districts focus on food processing, carpentry, stone carving, handloom, engineering fabrication, and agricultural implements.

Rayalaseema districts have been identified for rice mills, spices, leather puppets, wooden toys, power looms, kalamkari, wood carving, saree designing, and stone processing, aiming 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 MSMEs across Andhra Pradesh.