The Andhra Pradesh government proposes an ‘associations-led’ industrial parks policy, expanding land access and encouraging decentralised manufacturing, with industry leaders calling it a potential game changer for regional economic growth.
Micro, small and medium enterprise groups in Andhra Pradesh have welcomed the state government’s proposal for an “associations-led” industrial parks policy, saying it could give industry bodies a bigger role in building manufacturing clusters and support jobs outside the big urban centres. According to Deccan Chronicle, the government has begun consultations with MSME associations as it works on the framework. The plan under discussion would expand the land window for such parks from the current 10 to 100 acres to as much as 100 to 500 acres.
Industry leaders want the policy to do more than simply open the door to larger plots. They are pressing the government to honour earlier land-related agreements signed at investment summits, arguing that entrepreneurs are ready to put money into projects that can function as ancillary suppliers to larger factories. One concern raised by associations is that even major industrial hubs in the state still rely heavily on parts and components brought in from Gujarat, Coimbatore, Chennai and, to a lesser extent, Karnataka and Maharashtra.
The Federation of Small and Medium Enterprises of India said it has already received 170 applications from prospective entrepreneurs interested in developing SME parks to international standards. The group believes the policy could speed up industrialisation, spread investment more evenly across districts and create sizeable employment. Its president, A.P.K. Reddy, told the publication that the proposal could be “a game changer” for industrial promotion, economic growth and job creation in the state.
The discussion comes as the government steps up its broader push on MSME infrastructure. Andhra Pradesh Chief Minister N. Chandrababu Naidu has recently virtually launched dozens of new MSME parks across the state, with reports from KNN India and other outlets saying the administration is aiming for plug-and-play industrial sites in all 175 Assembly constituencies. Together, the new parks and the proposed associations-led model point to a wider effort to decentralise industrial development and build local supply chains around smaller firms.
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