AP Economy Shows Recovery Signs, MSMEs Flag Skill and Power Challenges

Vijayawada, December 10: Andhra Pradesh’s economy is showing early signs of revival after several years of slowdown, with growth being recorded in agriculture, industrial production, and the services sector, officials said. Industry representatives noted that government spending on infrastructure and welfare schemes has helped revive demand in many parts of the state. Officials also highlighted improvements in investment proposals and startup activity.

However, Micro, Small and Medium Enterprises (MSMEs), especially in Vijayawada and surrounding regions, expressed concerns over persistent challenges such as skilled labour shortages, policy delays, and rising electricity tariffs. Industry bodies urged the government to introduce focused skill-development programmes and energy support measures to ensure long-term stability and employment growth in the MSME sector.

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