State launches Rs.200 cr cluster drive to double MSME exports by 2030
Vijayawada: The state government on Thursday launched the Andhra Pradesh Cluster Development Programme (APCDP), a flagship initiative aimed at strengthening the competitiveness of micro and small enterprises and doubling the state’s export potential by 2030.
The state currently has 19.65 lakh Udyam-registered MSMEs, of which over 99 per cent are micro and small enterprises, and nearly 25 per cent are engaged in manufacturing. The MSME sector accounts for 28.3 per cent of the state’s total exports, making it the second-largest engine of economic growth after agriculture. While coastal districts host a higher share of capital-intensive MSMEs and exports, the Rayalaseema region has a greater concentration of labour-intensive micro enterprises. The APCDP builds on a series of initiatives launched by the State government, including the One Family One Enterprise (OFOE) programme, the establishment of 175 MSME Parks, one in each Assembly constituency, and the Private Industrial Parks Policy with plug-and-play infrastructure.
Under the new programme, the government will establish 45 Common Facility Centres (CFCs) across existing MSME clusters to support advanced manufacturing, testing, R&D, packaging and quality certification. The initiative aims to improve productivity, product quality and energy efficiency through shared infrastructure and technology. The programme is expected to generate direct employment for around 7,557 persons by 2030. Of the 45 clusters, four will be developed in 2025–26, followed by 16 clusters in 2026–27, 15 in 2027–28, and 10 in 2028–29. The total approved budget outlay stands at Rs 200 crore up to 2030.
Project costs will range between Rs 1-5 crore and Rs 5-10 crore, with the State government contributing up to 90 per cent of the machinery cost, while the remaining share will be borne by beneficiary units through a Special Purpose Vehicle (SPV). The AP MSME Development Corporation will serve as the implementing agency.
The Chief Minister said the cluster-based approach would enable small manufacturers to access modern technology and infrastructure collectively, helping them achieve product perfection and scale up for global markets.
The MSME minister said the programme would allow micro and small enterprises to compete with larger industries and significantly expand their domestic and international footprint.
