Suggest appropriate measures to overcome the institutional problems of small scale industries in Andhra Pradesh.
In short
Institutional problems of small scale industries in Andhra Pradesh can be overcome by specialised SSI bank branches lending on viability rather than collateral, dedicated industrial power feeders, revived marketing support and simpler regulation. Reinstating a 10% price preference for SSI products and enforcing the Delayed Payment Act would help.
Model answer
Ghissu Editorial · Verified 4 Oct 2026 · 260 words
Infrastructure and Power Issues
Frequent power outages and inadequate industrial infrastructure increase costs; dedicated industrial feeders and renewable energy parks can ensure reliable supply. Poor transport connectivity in some clusters also hampers timely raw material supply and product distribution.
Marketing Support and Price Preference
Withdrawal of price preference policies reduces competitiveness; reinstating a 10% price preference and enhancing marketing via e-commerce and government procurement can boost SSI products. Strengthening industrial clusters with common marketing facilities will also improve market reach.
Regulatory and Awareness Reforms
Complex procedures and weak enforcement of the Delayed Payment to SSI Act impede growth; simplifying regulations and promoting MSME schemes such as credit guarantees and state industrial incentives will empower entrepreneurs. Conducting regular awareness campaigns can increase scheme uptake.
Skill Development and Digital Integration
Launching training through APSSDC and MSME Technology Centres and creating digital platforms for credit and regulatory services will improve SSI efficiency. Digital tools can also facilitate better market linkages and compliance monitoring.
This model answer is indicative and the model can make mistakes; please verify key facts independently.

Practise this question
1Get the answer sheet
Sized for this question.
2Write your answer
Timed, by hand.
3Get it marked
Your score and what to fix.
This chapter in the exam
Industrial Policy of the AP Government18 questions
Asked in 8 of 8 sittings since 2008
Most tested: MSME/SSI promotion and state industrial policy incentives
- 2025Critically Examine the industrial policy of the Andhra Pradesh government. What are the major initiatives, support measures and bottlenecks to industrial development in the state?
- 2023With respect to the Micro, Small and Medium Enterprises (MSMEs) in Andhra Pradesh, discuss the following : (i) Importance of MSMEs in Andhra Pradesh economy (ii) Scope and implementation of Dr. YSR Navodayam and ReSTART programmes in Andhra Pradesh.
All 18 questions, sorted by sub-topic, with model answers and practice.
Question from the official APPSC Group-I Mains 2012 paper. Answer written by Ghissu's engine and checked against our editorial standards. Found an error? Tell us and we correct it within 48 hours.