Andhra plans Japan-style industrial clusters to link MSMEs to global supply chains, says T.G. Bharath
The State has built a pipeline of 714 projects worth ₹22.6 lakh crore, with a potential to create 19.3 lakh jobs, says Industries and Commerce Minister
Andhra Pradesh's Industries and Commerce Minister, T.G. Bharath, has announced ambitious plans to emulate Japan’s industrial cluster development model. The minister highlighted the importance of decentralisation and targeted manufacturing excellence, asserting that localised clusters will enhance resource sharing, decrease operational costs, and facilitate MSMEs' integration into global supply chains.
During a press conference at the CII Regional Summit on October 7, 2026, Bharath explained that replicating Japan’s high-efficiency framework would enable the government to create state-of-the-art economic zones, complete with cutting-edge common utilities, superior logistics connectivity, and comprehensive technical support. By clustering compatible industries, the State aspires to optimise supply chain efficiency and foster high-tech manufacturing, especially in the core sectors of North Andhra Pradesh, such as engineering, marine processing, and emerging technologies.
The regional conference ushered in a series of ground-breaking initiatives, with 33 ground-breaking projects valued at ₹3, 518.73 crore, generating 9,449 jobs. These included eight Special Investment Promotion Boards (SIPBs), three tourism projects, and 22 MSMEs in North Andhra districts. Additionally, 31 Memorandums of Understanding (MoUs) valued at ₹21,498 crore were signed, with the potential to create 56,945 jobs.
The State has an extensive pipeline of 714 projects valued at ₹22.6 lakh crore, capable of creating 19.3 lakh jobs. Among the completed projects, 473 projects valued at ₹16.6 lakh crore have received gazette notifications, with G.O.s issued. Furthermore, 247 projects valued at ₹4.7 lakh crore have already been grounded, with the potential to create 7.1 lakh jobs.
Bharath stressed that the process of signing agreements marks the beginning, while production embodies the ultimate goal. The signing ceremony coincided with the lead-up to the CII Partnership Summit, which will take place on November 12 and 13 in Visakhapatnam.
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