AP Budget 2026–27 puts MSMEs at the core of growth: Minister

• Kondapalli Srinivas says vision of ‘One Family-One Entrepreneur’ will generate 20 lakh jobs, backed by MSME clusters, 175 parks and 45 Common Facility Centres
• Rs 913 cr allocated for MSME incentives, SC/ST entrepreneurs, cluster development, and infrastructure, with added support through credit guarantees and TReDS liquidity
• ‘AP Champion MSME Mission’ to nurture 500 enterprises globally, leveraging Centre’s Rs 10,000 crore SME Growth Fund and expert compliance support

Vijayawada: The state government has accorded top priority to the micro, small and medium enterprises (MSME) sector in the 2026–27 state Budget, with a vision of ‘One Family – One Entrepreneur,’ aiming to generate 20 lakh jobs, MSME, rural poverty eradication and NRI empowerment minister Kondapalli Srinivas said.

He said in a statement on Monday that the initiative aligns with the national vision of Viksit Bharat @2047 and the state’s Swarna Andhra @2047 goals. The government has prepared a comprehensive plan to strengthen the industrial ecosystem by developing MSME clusters and infrastructure across the state.

He said under the AP Cluster Development Programme (AP-CDP), 45 Common Facility Centres (CFCs) will be established over five years at a cost of Rs 200 crore, leading to the creation of 1,688 new enterprises.

The government is also setting up 175 MSME parks, one in each Assembly constituency. While 15 parks are already operational, foundation stones have been laid for 82 more, and infrastructure development is progressing rapidly.

To leverage Central assistance under the MSE-CDP scheme, which offers 60–80 per cent grants, the State is contributing 15–20 per cent of the project cost to ensure maximum benefit.

For 2026–27, the Budget allocations include Rs 111.82 crore for cluster development, Rs 100 crore for infrastructure, Rs 229.36 crore for MSME incentives, Rs 316.38 crore for SC entrepreneurs, and Rs 71.20 crore for ST entrepreneurs. An additional Rs 84 crore has been earmarked for MSME promotion compared to last year.

The minister said the Andhra Pradesh Credit Guarantee Scheme has been launched to provide up to 95 per cent loan guarantee support to micro and small enterprises, with Rs 10 crore allocated on a pilot basis. A statewide TReDS mandate will also be issued to ensure faster payments to MSMEs.

In alignment with the Union Budget 2026, the State will focus on three key strategies — equity, liquidity, and professional support.

With assistance from the Centre’s Rs 10,000 crore SME Growth Fund, the ‘AP Champion MSME Mission’ will identify and nurture 500 top MSMEs to scale up globally.

Through the TReDS platform linked with the GeM portal, MSMEs will be able to access immediate liquidity for supplies. Additionally, a ‘Corporate Mitra’ expert team, in collaboration with ICAI and ICSI, will assist enterprises in compliance and regulatory matters at District Industries Centres and MSME parks.

Highlighting sectoral strengths, Srinivas noted that Andhra Pradesh ranks among the top states in coconut, cashew, and cocoa production.

The state sees investment potential of Rs 1,000 crore in coconut processing and Rs 400 crore in cocoa. The increase in duty-free import limits on marine exports from 1 per cent to 3 per cent will further enhance the competitiveness of the aquaculture sector.

“The Budget aims to transform every household into an industrial hub, turning job seekers into job creators,” the minister said.