Parliament Question: MSMEs Shut Down in Andhra Pradesh

GOVERNMENT OF INDIA MINISTRYOF MICRO, SMALL AND MEDIUM ENTERPRISES LOK SABHA UNSTARRED QUESTION No. 770 TO BE ANSWERED ON 23.07.2026 MSMEs SHUT DOWN IN ANDHRA PRADESH

770. SHRI P V MIDHUN REDDY:

Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:

(a) the total number of Micro, Small and Medium Enterprises (MSMEs) in Andhra Pradesh that have shut down since 2024, sector-wise and year-wise including its comparison to the national closure rate during the same period;

(b) the estimated total employment lost in Andhra Pradesh due to these MSME shutdowns during the last two financial years;

(c) whether the Ministry has assessed the specific vulnerabilities of granite polishing units, aquaculture processors and handloom cooperatives in Anantapur and Kurnool districts of Andhra Pradesh and if so, the details thereof; and

(d) whether the Ministry is considering any central relief package or a special Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)-backed restructuring facility to support the State's distressed MSME sector and if so, the details thereof? ANSWER MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SUSHRI SHOBHA KARANDLAJE)

(a) to (d): Udyam Registration Portal was launched on 01.07.2020. As on 30.06.2026, the number of Micro, Small and Medium Enterprises (MSMEs) registered in Andhra Pradesh on the Udyam Registration (UR) Portal and Udyam Assist Platform (UAP) was 26.33 lakh since FY 2024-25 and 4,520 MSMEs have been closed/shut down and 48,477 persons were employed in the units that have closed during the same period.

Year-wise and sector-wise total MSMEs closed and employment lost in Andhra Pradesh state and all

India is given below:

Financial Year Wise Total MSMEs Closed and Employment Lost in Andhra Pradesh State comparison with All India Andhra Pradesh All India Financial Emplo Employm Year Micro Small Medium Total Micro Small Medium Total yment ent 2024-25 - 1,388 13 1,401 22,120 39,128 291 27 39,446 2,60,116 2025-26 - 2,397 10 2,407 20,473 62,529 210 8 62,747 3,70,493 2026-27 (Till - 30/06/202 706 6 712 5,884 18,080 68 6 18,154 1,25,114

6): 2 :

Ministry of MSME implements Credit Guarantee Scheme (CGS) for Micro Small Enterprises

(MSEs) through Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to provide credit guarantees for the credit facilities extended to MSEs without the requirement of collateral security or third-party guarantees. Since inception in 2000, till 30.06.2026, a total of 10.2 lakh credit guarantees amounting to Rs. 44,941 crore have been extended to MSEs in Andhra Pradesh.

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