Development of small and medium enterprises in Andhra Pradesh

Moving away from the pre-liberalisation era of protection, Small and Medium Enterprises (SMEs) sector has been steadily reorienting itself to face the challenges posed by increased competition, domestically and globally, in the phased programme of integration with the global economy. Micro, small and medium enterprises (MSMEs), also referred to as SME sector, with their dynamism, flexibility and innovative spirit have been adapting themselves to the fast changing needs of the market-driven economy. The strategies adopted in recent years are to help the sector to become competitive in the national and international markets, and graduate from micro to small, small to medium, and medium to large. In the environment of competition and rapid technological changes, the sector can achieve higher sustained growth by enhancing its standards, and seeking ways of innovation.

The article outlines the national scenario for the SME sector, and reviews the development of the sector in Andhra Pradesh from 1956 to 2010, and more particularly during 1995–2010, with focus on a study of regional disparities, with basic data district-wise made available by the Commissionerate of Industries, Andhra Pradesh. Incentive package for industries of the State for 2010–2015, as well as the emerging thrust areas, and suggestions from the Vision 2020 Document of the State Government are presented. Directions of the SME sector for Andhra Pradesh, and recent efforts on certain strategies are also recalled. Another direction in which analysis has been attempted is progress in infrastructure development, with focus on export promotion, with special facilities created in recent years. These include Software Technology Parks, Special Economic Zones, Agri Export Zones, Spices Parks, Food Parks, and Integrated Textile Parks.