Andhra plans Japan-style industrial clusters to link MSMEs to global supply chains, says T.G. Bharath

Andhra Pradesh Industries and Commerce Minister T.G. Bharath has said that the State is laying robust groundwork to adopt a Japan-style cluster development model.

Emphasising decentralisation and targeted manufacturing excellence, the Minister stated that structuring localised clusters will streamline resource sharing, reduce operational costs, and seamlessly integrate domestic MSMEs into global value chains.

Speaking to The Hindu on the sidelines of the CII Regional Summit on Wednesday (October 7, 2026), Mr. Bharath noted that mirroring Japan’s high-efficiency framework allows the government to establish dedicated economic zones equipped with advanced common utilities, logistics connectivity, and technical support.

By grouping complementary industries together, the State aims to optimise supply chain efficiency and foster high-tech manufacturing, particularly across North Andhra’s core sectors like engineering, marine processing, and emerging technologies.

The regional conference served as a powerful precursor to the main CII Partnership Summit scheduled for November 12 and 13 in Visakhapatnam.

Bhoomi puja done for 33 projects

Groundbreaking ceremonies (bhoomi puja) were conducted for 33 projects worth ₹3, 518.73 crore, creating 9,449 jobs. These included eight SIPB, three tourism and 22 MSMEs in North Andhra districts. Similarly, 31 MoUs worth ₹21,498 crore were signed with potential to create 56,945 jobs.

The State has built a pipeline of 714 projects worth ₹22.6 lakh crore, with potential to create 19.3 lakh jobs. A total 473 projects worth ₹16.6 lakh crore have already been converted, with G.O.s issued. A total of 247 projects worth ₹4.7 lakh crore have already been grounded, with the potential to create 7.1 lakh jobs, he said.

“For us, a signature is the beginning, production is the goal,” Mr. Bharath said.