Published Paper Details:

MSMEs are vital for contribution to GDP, employment, exports balanced development and being nursery of entrepreneurs in Andhra Pradesh. The Government of Andhra Pradesh is striving for the establishment and development of MSMEs in all its 13 districts by providing a variety of incentives, concessions, assistance and subsidies for their development. In this context, the present paper makes an attempt to present and analyze the structural features of MSMEs in Rayalaseema districts of Andhra Pradesh, which comprises Anantapuram, Chittoor, Kurnool and YSR districts. After the reorganization of the State of Andhra Pradesh according to the A.P. Reorganization Act -2014, Andhra Pradesh was separated with 13 districts, comprising 9 Coastal and 4 Rayaalseema districts. This paper specifically focuses on Rayalaseema region and attempts to prove that MSMEs are one of the best strategic options for the economic development of Rayalaseema districts, as they are comparatively backward and drought-prone districts. Estimating the correlation between the amount of capital required for generating employment both in large and medium industries as well as in MSMEs, this paper corroborates the argument that MSMEs are the engines of employment generation. An attempt is made of analyze the growth and performance of MSMEs in Rayalaseema region in terms of number of units, investments made and employment generated with specific focus on four districts of Rayalaseema region. A brief mention is made about the constructive intervention of Government of Andhra Pradesh in a variety of ways and aspects related to MSMEs, their establishment and development during the post-reorganization period i.e. 2014-15 to 2017-18. The paper concludes that MSMES the best suitable industrial activities for the development of Rayalseema districts, where the irrigation intensity is low, agriculture sector is subject to disguised unemployment; age productivity is low and severely prone to drought.