Micro, Small and Medium Enterprises
Overview of India
in terms of the number of MSME enterprises in the country
40% exports
Contribution by MSME enterprises to country’s exports across various sectors
As per MSMED Act. 2006
Micro enterprise does not exceed 25 lakhs
Small enterprise is more than 25 lakhs but does not exceed 5 Crore
Medium enterprise is more 5 Crore but does not exceed 10 Crore
Destination Andhra Pradesh
25.96 lakh
MSME enterprises in the state
70.69 lakh
employed in state MSME sector in Andhra Pradesh
in terms of population employed in MSME in Andhra Pradesh
Incubation centres
Set up to support startups to create a conducive eco-system for the sector
MSME park
to be established in each district up to 25 acres with infrastructural facilities in each district
MSME facilitation desk
to be constituted to provide one-stop solution to all MSME related queries/grievances
Revival fund of Rs. 100 crore
to be established in 2015-16 to support the revival of MSMEs across the state
in ease of doing business
By World Bank
Skilled labour workforce available
Excellent logistics and reliable infrastructure available
Drivers of Growth
Expansion of major industries
creating need for ancillary sector
Key Policy Targets
₹15,000 crore
(US $ 2.25 billion)
new investments in the sector by 2020
additional employment in the sector by 2020
Key Fiscal Incentives
Stamp duty reimbursement
100% reimbursement on Stamp-Duty within 6 months on certain purchase or lease of land for industrial use.
VAT/CST/SGST reimbursement
100% reimbursement on net VAT/CST/SGST for a period of 5 years on commercial production for micro and small industries.
75 % reimbursement for a 7-year period for medium industries and other benefits.
The State will ensure 24x7 quality and reliable power across the State. In addition, fixed power cost reimbursement is also being proposed.
Fixed capital subsidy
Investment subsidy on fixed capital investment for micro and small enterprises up to INR 20 lakhs.
Seed capital assistance for micro enterprises
Seed capital assistance to First Generation Entrepreneurs to set-up Micro Enterprises @10% of the Machinery cost.
Skill upgradation
Training by the state on specific skill sets required by the industry. GoAP will reimburse costs involved in skill upgradation and training the local manpower limited up to a certain amount.
Land banks
GoAP shall reserve lands for MSME in industrial parks in general and specifically for women in addition to reimbursements and rebate on the land related expenses.

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