A.P. targets 45 MSME clusters under Cluster Development Programme, aims to generate 7,032 jobs

The Andhra Pradesh government has announced an ambitious cluster-based development strategy for the Micro, Small and Medium Enterprises (MSME) sector; It has identified 45 potential industrial clusters across regions with an outlay of ₹200 million to strengthen infrastructure, increase employment and stimulate regional economic growth.

GO Ms. No. dated January 10, 2026. Under the Andhra Pradesh Cluster Development Program (AP CDP) launched through 17, the State aims to establish Common Facility Centers (CFCs) to support MSMEs with common infrastructure, technology and services. The program will provide financial assistance up to 80% of the project cost, especially for machinery in MSME parks.

MSME Minister Kondapalli Srinivas said: Hindu The program is expected to benefit 1,688 MSME units and create employment for around 7,032 people between 2026-2030.

The government has mapped region-specific industrial strengths to develop specialized clusters in three economic zones: Visakhapatnam, Amaravati and Tirupati Economic Zones. The Andhra regions on the north coast are divided into sectors such as cashew, mango jelly, polymer and packaging, printing, petroleum, rags, dairy products, coconut sweets and automobiles. The central coastal Andhra regions focus on food processing, carpentry, stone carving, looms, engineering manufacturing and agricultural implements.

Rayalaseema regions are designated for rice mills, spices, leather puppets, wooden toys, power looms, kalamkari, wood carving, sari design and stone working, aiming to create local industrial ecosystems based on traditional strengths and market potential.

The initiative is expected to accelerate balanced industrial development and enhance the competitiveness of MSMEs in Andhra Pradesh.