MSME sector in Andhra Pradesh gets ₹1,000 crore boost in 2019–2020 budget

Out of this, ₹100 crore will be used for the revival of sick MSMEs, ₹400 crore will be utilised for providing incentives to new MSMEs, and ₹500 crore will be used for developing MSME parks.  

Industry bodies in the state welcomed the allocation of ₹1,000 crore to MSMEs and  were also appreciative of the new schemes announced by the government. Though observers say that earmarking higher funds for welfare may make debt management difficult in future.

Potluri Bhaskara Rao, President of the AP Food Processing Industries Federation and Co-chairman of ASSOCHAM’s AP State Council said in reports that ‘the allotment of ₹500 crore for setting up MSME parks, ₹100 crore to revive sick units and ₹400 crore for incentives will help in boosting the sector. Even though the allotments are on the higher side, they are lower than the revised estimates of last year. The government also should have allocated more for food processing industries.”

Rao added that almost 29 per cent of the budget allocations were for welfare schemes, which may make the management of debt an issue in the future. The Chairman of Confederation of Indian Industry, RVS Rudraraju also welcomed the budget and said that the increased allocation to farming and rural sector would increase purchasing power in rural areas.

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