Andhra Pradesh MSME & Entrepreneur Development Policy 4.0 incentives

The MSME & Entrepreneur Development Policy 4.0 for 2024 to 2029 is the state's main route for micro, small and medium units. Each head is a reimbursement or subsidy paid after the unit has invested or paid, not an up-front grant. The policy was amended from 1 April 2025 to adopt the new central MSME size bands.

What you get

• Capital subsidy
• Reimbursement of technology upgradation or modernisation cost
• Fixed power-cost reimbursement
• Reimbursement of net state GST
• Reimbursement of skill-upgradation cost
• Reimbursement of energy and water audit cost
• Local procurement subsidy
• A top-up for quality-certification cost
• A separate schedule at higher rates for special-category enterprises, including a transport-services capital subsidy limited to SC/ST entrepreneurs. The amending order does not define the special category, so check the policy text.

Who can apply

• Micro, small and medium manufacturing units set up or expanding in Andhra Pradesh
• A state-registered unit within the size bands as amended from 1 April 2025
• A unit that starts commercial production within the policy period
• The portal also screens for notified locations, ineligible activities, second-hand machinery above a set share and expansion thresholds

How to apply: Register the enterprise on the department's Single Desk Portal, then file one Common Application Form plus the individual incentive form for each incentive on the Industrial Incentives portal. Forms are signed with a Digital Signature Certificate, and an Application Id is sent by SMS, email and on your dashboard.