In four years, Andhra Pradesh’s MSME units have increased by 60 percent to 60,800 units, reveals data from the state’s industries department accessed by CNBC-TV18. In 2019, Andhra Pradesh had 37,956 MSME units. This number stands at 60,800 units today despite the impact of the COVID-19 pandemic in between.

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According to official data from the Andhra government, MSMEs in the state employ over 5.61 lakh individuals today — a significant rise from approximately 4.05 lakh in 2019.

"We have recognised that MSMEs are the backbone for industrial development and as well as for the creation of employment in the state," said Gudivada Amarnath, Minister of Industries, Andhra Pradesh, "During COVID-19, between 2020 and 2022, we have given Rs 1,900 crore to MSMEs as part of an MSME restart package."

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He added, "We hand-held 15,000 MSMEs in the state through this period, incentives of Rs 900 crore and Rs 1,000 crore in in two separate tranches, and plan on releasing another Rs 726 crore, which will happen soon after the investor summit."

The minister’s references are to schemes like the YSR Navodayam, which offered a one-time loan restructuring to the state’s MSMEs at the time of the pandemic. Further, schemes like the YSR Cheyutha and YSR Aasara have been designed to support women entrepreneurs.

The state has set a target of starting 100 MSME clusters in the next two years, of which 52 clusters are expected to take form and shape in FY-23.

"In the last four years, the state’s financial incentives to the MSME sector, through various schemes have ensured progress within existing MSMEs and creation of over 20,000 new MSMEs," said Rajiv Krishna, advisor to the Andhra Pradesh Government.

"Today, more than 12 lakh families — this totals to about 10 percent of our population — earn their livelihood directly from MSMEs," he added.

With over 5,100 MSMEs operating across sub-sectors like Organic and Inorganic Chemicals, Plastics, Specialty Chemicals, Industrial Gases, Agrochemicals, and Fertilizers, the MSME ecosystem in Andhra Pradesh has so far attracted investments totalling to $2.4 billion, in the recent past.

Starting Friday, the state will see investors gather at Chief Minister YS Jagan Mohan Reddy's first investor summit after taking over as CM in 2019. Investments in Energy and Manufacturing are expected to come through at the AP Investor Summit, as prominent industry leaders are expected to ink MOUs to this end.

Also Read: Covid-hit MSMEs getting back on track with outstanding credit rising and loan delinquency falling

(Edited by : Anushka Sharma)