VISAKHAPATNAM: Andhra Pradesh has witnessed the closure of 4,520 Micro, Small and Medium Enterprises (MSMEs) since the start of the 2024-25 financial year, with nearly 48,477 workers losing their jobs, according to data placed before the Lok Sabha by the Union Ministry of MSMEs.
Minister of State for MSME Shobha Karandlaje said that 26.33 lakh MSMEs in Andhra Pradesh had registered on the Udyam Registration Portal and the Udyam Assist Platform since 2024-25, as of June 30, 2026.
The Ministry said 4,520 registered MSMEs had been closed during the period, with 48,477 people employed in these units losing their livelihoods.
The year-wise data shows that 1,401 MSMEs shut down in 2024-25, including 1,388 micro enterprises and 13 small enterprises. In 2025-26, closures rose sharply to 2,407 units, comprising 2,397 micro enterprises and 10 small enterprises.
During the first three months of 2026-27, up to June 30, another 712 MSMEs ceased operations, including 706 micro and six small enterprises. No medium enterprises were reported to have shut down during the period.
The reply, however, did not provide the national comparison of MSME closure rates sought by the MP, though it stated that comparable data for Andhra Pradesh and the country was available.
On concerns relating to specific sectors such as granite polishing units, aquaculture processors and handloom cooperatives in Anantapur and Kurnool districts, the Ministry did not indicate that any separate vulnerability assessment had been carried out.
The Centre also ruled out announcing any special relief package or a dedicated restructuring facility for distressed MSMEs in Andhra Pradesh. Instead, it highlighted the existing Credit Guarantee Scheme implemented through the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), which enables collateral-free loans to eligible micro and small enterprises.
According to the Ministry, Andhra Pradesh has benefited significantly from the scheme. Since its inception in 2000 and up to June 30, 2026, CGTMSE has extended over 10.2 lakh credit guarantees covering loans worth Rs 44,941 crore to micro and small enterprises in the State.
