MSME Formalization

MSME Formalization

MSME is a key focus area for the Government of Andhra Pradesh. The Government of Andhra Pradesh is dedicated to improving the health and performance of the Micro, Small, and Medium Enterprises (MSMEs) in the state. The government has also constituted AP MSME Development Corporation (APMSMEDC) to drive focused efforts benefiting the sector.

AP MSMEDC is driving various initiatives, one of which is the AP MSME ONE platform. Through this platform, the government is focusing on providing comprehensive support to MSMEs, fostering their growth, and addressing challenges to ensure a robust and competitive business environment.

Despite Andhra Pradesh being home to more than 7 lakh MSME enterprises (as registered on Udyam Portal), the 73rd round of National Sample Survey in 2015-16 indicates a larger MSME presence of around 33.78 lakh in Andhra Pradesh. This highlights a significant gap, suggesting that over 20 lakh MSMEs in Andhra Pradesh remain unregistered.

In order to ensure that all the MSMEs in the state receive the required support in order to grow, the state government deems it necessary to identify and register the large number of MSMEs which have not been formalized yet through Udyam.

Hence, a robust and comprehensively planned formalization initiative for MSMEs is being taken up by APMSMEDC. This initiative aims to identify MSMEs across all sectors, both manufacturing and service and trade and retail businesses, through a survey, and bring them onto a digital platform.

As part of the Strategic Investment Plan under RAMP, the state has been accorded approval to conduct a comprehensive on-ground “MSME survey and support” as one of the interventions submitted under SIP, RAMP. The objectives of the survey are:


1.Through this MSME survey, register Micro, Small, and Medium Enterprises (MSMEs), currently working in Andhra Pradesh.
2.Formalize these MSMEs by facilitating their registration on Udyam portal
3.To develop a holistic database, under AP MSME ONE platform, of all MSMEs operating in Andhra Pradesh
4.Enable the entrepreneur to get support on various areas from the government
5.To leverage the data to

Through the AP MSME One platform, it is envisaged to make available all the support that MSMEs need to effectively start and operate a business in the state, get market linkages, credit linkages and credit guarantee support etc. This will be online and available to all registered MSMEs, the entrepreneurs will be able to login and update the information about their business. In addition, these MSMEs will also be able to request for specific services being offered by the platform. Moreover, these MSMEs will also be able to provide feedback on the state government policies that would help the MSME grow.