§1Policies
- AP MSME & Entrepreneur Development Policy 4.0 (2024-29) - G.O.Ms.No.69 I&C dt 26.10.2024; amended G.O.Ms.No.22 dt 17.02.2025Active2024-29 (5 years from notification)
- AP Industrial Development Policy 4.0, Innovation & Startup Policy 4.0, Food Processing 4.0, Textiles 4.0, Electronics 4.0, Drone 4.0 and othersActive2024-29
§2Incentive pattern
Capital subsidy25% of FCI (special category up to 45%)
Micro Rs.25 lakh, small Rs.1.5 Cr, medium Rs.7 Cr caps (general); special micro 45%/Rs.45 lakh, small 45%/Rs.4.5 Cr, medium 35%/Rs.7 Cr
ICAI MSME & Startup Committee - Andhra Pradesh State MSME Policy (2026 edition, secondary)SGST / investment subsidy100% net SGST for 5 years or till 100% FCI, capped at 5% of turnover
Manufacturing and service
ICAI MSME & Startup Committee - Andhra Pradesh State MSME Policy (2026 edition, secondary)Power tariffRs.1/unit (special Rs.1.5/unit) for 5 years with annual caps
Micro Rs.1 lakh, small Rs.5 lakh, medium Rs.15 lakh per year
ICAI MSME & Startup Committee - Andhra Pradesh State MSME Policy (2026 edition, secondary)Stamp duty100% reimbursement of stamp and transfer duty
Once per land transaction
ICAI MSME & Startup Committee - Andhra Pradesh State MSME Policy (2026 edition, secondary)LandSC/ST micro & small: 75% land cost rebate up to Rs.25 lakh in APIIC parks
New units only
ICAI MSME & Startup Committee - Andhra Pradesh State MSME Policy (2026 edition, secondary)Patent & quality100% quality certification cost as top-up over GoI support
Includes consultancy fees
ICAI MSME & Startup Committee - Andhra Pradesh State MSME Policy (2026 edition, secondary)Export / freight1% of export turnover for 3 years (sector policies / export promotion)
Caps by category; exhibitions 50-100%
ICAI MSME & Startup Committee - Andhra Pradesh State MSME Policy (2026 edition, secondary)OtherOverall cap 75% of FCI
Combination of all incentives under the policy
KIP Financial - AP MSME & EDP 4.0 summary (consultancy, secondary)§3State schemes
- AP capital subsidyActiveGeneral: 25% of FCI - micro max Rs.25 lakh (2 years), small max Rs.1.5 crore (3 years), medium max Rs.7 crore (4 years)
- AP SGST & powerActiveNet SGST: 100% for 5 years or till 100% FCI realised (capped at 5% of annual turnover)
- AP other incentivesActiveStamp duty and transfer duty: 100% reimbursement on purchase/lease/transfer of industrial land and buildings, once per land transaction
More incentives in the policy (7)
Name and benefit are from the policy; the full conditions are not on this page yet — see the policy document.
- AP Innovation & Startup Policy 4.0Grant up to Rs.20 lakh (special category), seed funding up to Rs.50 lakh, interest subsidy 8% on term loans for startups
- AP Food Processing Policy 4.0Primary processing capital subsidy 25% (micro Rs.25 lakh / small Rs.1.5 Cr / medium Rs.7 Cr; FPO Rs.50 lakh); special 35%
- AP Textile, Apparel & Garments Policy 4.0Investment subsidy 30% (special 45%) of eFCI; power Rs.2/unit; 50% electricity duty exemption for 5 years
- AP Drone Policy 4.0 (G.O.Ms.No.18, 19.11.2024)20% capital subsidy up to Rs.5 Cr; 100% net SGST 3 years; testing/IP reimbursements
- AP export promotion incentives1% of annual export turnover for 3 years (caps by category); 50-100% exhibition cost
- Electronics, Sustainable E-Mobility, Integrated Clean Energy policies 4.0; Private Industrial Parks (plug and play) policySector packages - not detailed here
- Backward Community-led MSMEs additional benefits (G.O. 2025)Additional support on capital expenditure, power cost and land cost (search snippet of AP G.O.)
§4District zones
In many states the subsidy rate changes with the zone of the district or block.
Schemes for some districts only
- Drone City, OrvakalKurnool
→Industrial land in this stateAgency, portal, allotment, lease
§5Famous for
- GunturDry red chilli trade (Guntur Mirchi Yard) →
- DuggiralaTurmeric processing and trading →
- PidugurallaLimestone and burnt lime kilns →
- MangalagiriMangalagiri handloom cotton sarees and fabrics →
- VisakhapatnamIntegrated steel plant (Vizag Steel) →
- Parawada (Jawaharlal Nehru Pharma City)Bulk drug and pharmaceutical manufacturing park →
- Machilipatnam and PedanaBlock-printed Kalamkari textiles with natural dyes →
- MachilipatnamImitation (rolled gold) jewellery →
- SrikalahastiHand-painted (pen) Kalamkari →
- VenkatagiriFine cotton Venkatagiri sarees with zari →
- Sri CityMulti-product industrial city: electronics, consumer goods, auto parts →
- BhimavaramShrimp and fish aquaculture →
- NarsapurHand-made crochet lace →
- KondapalliKondapalli wooden toys (bommallu) →
- EtikoppakaLacquered wooden toys with natural dyes →
- DharmavaramDharmavaram silk (pattu) sarees →
- UppadaUppada Jamdani silk sarees →
- Chimakurthy and OngoleBlack Galaxy granite quarrying and processing →
- MarkapurSlate stone quarrying and products →
- PalasaCashew processing →
- BudithiBell metal and brass utensils and craft →
§6Choose your district
For each district: its ODOP product, its subsidy zone and the schemes that run only there.
- Alluri Sitharama RajuCoffee (Araku), Bamboo Craft, Rock Bee HoneyAspirational
- AnakapalliEtikoppaka Lacquerware/ Wooden Toys, Palm Leaf, Payakaraopet Silk Sarees
- AnanthapuramuCotton/Jean Pants, Dharmavaram Silk Sarees
- AnnamayyaCotton / Jean Pants, Red Sander & Wood Carvings, Raja Rani Dolls, Applique Work, Mandanapalle Silk Sarees
- BapatlaGranite Cutting and Polishing, Cotton Bags, Chirala Silk Sarees
- ChittoorVenkatagiri Sarees, Mango Pulp, The Glass Beads, Kollangantu Tie & Dye Check Lungies, Teracotta
- Dr. B.R. Ambedkar KonaseemaNatural banana fibres, Bandaru Lanka Sarees, Angara Sarees, Coconut & Coir, Shrimp, Oil & Natural Gas, Pasalapudi Sarees
- East GodavariFruit Based Food Products (Pickles, Mango Jelly, Fruit Pulp, Cashew nuts, Lemon extracts), Ratnam pens, White Wood Birds, Pulagurta Clothing Shirting & Sarees, Muramunda Cotton Shirting & Sarees, Veeravaram Silk Sarees, Dulla Sarees
- EluruGold Jewellery, Hand Knotted Carpet weaving, Walking Sticks, Nuziveedu veena, Eluru Cotton Sarees
- GunturChillies, Bronze Casting, Mangalagiri Sarees and Fabric
- KakinadaUppada Jamdani Sarees, Peddapuram Silk Dhotis, Upper and shirtings, Kalamkari Block Printing, Cashew Kernel
- KrishnaMachilipatnam Kalamkari, Kalamkari Block Printing, Pedana kalamkari Fabrics, Bandar / Polavaram Sarees, Gold Jewellery
- KurnoolStone carved products, Kodumuru Gadwal Sarees, Yemmiganuru Bedsheets
- Markapuram—
- NandyalAllagadda Stone Carving, Banganapalli Mangoes, Nandivargam plain towels & plain lungis
- NTRKondapalli Toys, Bandar type Resham (Art Silk) Sarees
- PalnaduDurgi Stone Carving, Sattenapalli Bedsheets, Leather Puppets, Spice Products
- Parvathipuram ManyamBobilli Veena, Bobilli Sarees, Severa Adivasi Paintings, RiceAspirational
- Polavaram—
- PrakasamGranite (Black Galaxy), Ethamukkala Check Lungis
- Sri Potti Sriramulu NelloreUdayagiri Wooden Cutlery, Patturu Cotton Silk Sarees
- Sri Sathya SaiSilk Sarees, Leather Puppets, Dharmavaram Silk Sarees
- SrikakulamPonduru Cotton Sarees, Budithi Brassware, Ponduru Dhoti & Shirtings, Jute Works, Cashew Kernels
- TirupatiSrikalahasti Kalamkari Fabrics/ Handicrafts, Venkatagiri Cotton Sarees, Pen kalamkari, Wood Carvings, Lord Venkateswara Swamy Photo, Chennuru Silk Sarees
- VisakhapatnamSeafood Cluster, Basket Weaving
- VizianagaramMango Jelly, Bobilli Veena, Design Bedsheets
- West GodavariProcessed Prawn & Shrimp, Veemavaram Light Weight Sarees, Crochet Lace, Narspur Crochet Laces
- Y.S.R. KadapaVonipenta Brass, Madhavaram Sarees, Prodattur Raw (Kora) Silk Shirting, Barytes & Barium CompoundsAspirational
§7Focus sectors & ODOP
Food processingTextiles / handloomsPharmaceuticalsAutomotive / EVElectronicsDrones
ODOP / clusters2 entries175+ MSME parks with plug-and-play infrastructure planned (ICAI summary)
- 175+ MSME parks with plug-and-play infrastructure planned (ICAI summary)
- Drone City, Orvakal (Kurnool)
§8Why do business here — and why not
Merits
- High special-category subsidy (up to 45% of FCI for micro/small) after G.O.Ms.No.22 amendment (ICAI summary)
- Green-category MSMEs get end-to-end deemed approval (ICAI summary)
Demerits
- All incentives together capped at 75% of FCI (KIP summary of G.O.69)
- Capital subsidy paid over 2-4 years by size (ICAI)
- Official G.O. PDFs on AP MSME ONE could not be downloaded by automated fetch - founders must rely on the portal/DIC
¶Still being researched
We could not confirm these points from an official source, so no figure is printed on the page.
Open items6 points pending
- G.O.Ms.No.69, G.O.Ms.No.22 and G.O.Ms.No.28 texts not retrievable (apmsmeone.ap.gov.in serves an app shell to automated requests) - all AP figures from ICAI/KIP secondary summaries
- No district or zone differentiation found for MSME policy 4.0 - not confirmed from G.O.
- ap-medp4-investment-subsidy: documents not published (not retrievable)
- ap-medp4-sgst-power: documents not published
- ap-medp4-stamp-land-quality: documents not published
- Self-employment schemes (e.g., state SC/ST corporation schemes) not covered