Andhra Pradesh has become a major force in India’s textile industry thanks to its strategic port access, competent labor, and prolific cotton output. The Textile and Apparel Policy 2022–27 was introduced by the Andhra Pradesh government to further stimulate the sector and make the state a major center for integrated textile value chains.
Let’s examine the main benefits, incentives, and techniques by which you, as an investor, manufacturer, or MSME, can really profit from the Andhra Pradesh Textile and Apparel Policy. We’ll also explain how Cretum Advisory can be your compliance and strategy partner throughout this journey.
Key Objectives of What Andhra Pradesh Wants to Achieve?
The AP Textile and Apparel Policy is not just a document—it’s a mission statement. The goals are ambitious:
- Generate 2 lakh direct employment in textile sector
- Attract investments worth ₹10,000 crore
- Develop new textile parks and clusters
- Make the entire textile value chain stronger, including the spinning, weaving, dyeing, printing, clothing, and technology fabrics.
Important Points Under the Andhra Pradesh Textile and Apparel Policy
1. Capital Investment Subsidy
30% of Fixed Capital Investment (FCI) up to ₹20 crore for MSMEs
20% subsidy for large enterprises with a cap of ₹30 crore
Additional 5% for SC/ST/women entrepreneurs
2. Interest Subsidy
6% interest subsidy on term loans for 7 years for MSMEs
4% for large enterprises
Interest subvention available on working capital loans too
3. Power Tariff Reimbursement
₹1.50/unit power subsidy for 5 years
4. Stamp Duty Reimbursement
100% stamp duty reimbursement on land registration, lease deeds, and mortgages
5. Employee Cost Reimbursement
Reimbursement of ₹3,000 per employee/month for 5 years
Limited to new employment generated (min 100 employees)
6. Infrastructure Support
Access to plug-and-play units, common facility centers, and effluent treatment plants in upcoming Textile Parks Land at subsidized industrial rates within notified textile zones. That’s why the Andhra Pradesh Textile and Apparel Policy needed.
Target Sectors & Products Covered
- Sectors like- Printing, Dying, Processing, Weaving, Spinning and Knitting
- Clothing, hosiery, and ready-made garments (RMG) ara also included
- Integrated textile units and composite mills
- Production of textile machines
Key Takeaways (Statistical & Data)
- In terms of cotton output, Andhra Pradesh is one of the top 5 states in India, generating roughly around 20 lakh bales each year.
- Both brownfield investments and greenfield investments are intended to be supported by the policy.
- Export potential from Andhra’s coastal access and skilled labor is a major pull for global buyers.
- Over ₹1,000 crore worth of infrastructure projects are underway in textile zones like Kuppam and Hindupur.
Who Should Be Paying Attention?
This policy is gold for:
- Textile manufacturers planning to expand capacity
- Apparel brands looking to set up low-cost production units
- Startups in sustainable or technical textiles
- Exporters who want port connectivity & subsidies
- Investors looking for long-term tax-free zones and cluster-based operations
How Cretum Advisory Helps You Leverage This Policy?
Let’s be real—government incentives are powerful, but navigating paperwork, eligibility, and compliance is complex. That’s where we come in.
What We Offer:
Service How it Helps You
| Incentive Advisory Identify which subsidies your business qualifies for |
| Business Structuring Set up your manufacturing unit in eligible zones to maximize incentives |
| Policy Application Support End-to-end documentation, application filing, compliance checks |
| Industrial Licensing & Approvals We handle pollution NOCs, fire, factory license, ESI/PF setup, etc. |
| Project Finance Advisory Help in preparing DPRs, CMA data, and loan assistance |
| GST, Income Tax, and Compliance Ensure proper GST Compliances & audit-ready |
| Startup Registration & DPIIT Compliance For new-age textile startups, we handle entire registration |
| Udyam, IEC & MSME Benefits Get you listed and benefit from all applicable MSME policies |
We’ve helped dozens of textile and manufacturing businesses scale faster with proper compliance and smarter policy integration.
The Final Thoughts
The Andhra Pradesh Textile and Apparel Policy is more than just another government initiative; it’s a direct chance to increase hiring, reduce manufacturing costs, and expand your business with government assistance. This strategy gives you the tools to build more profitably, quickly, and intelligently, regardless of whether you’re an MSME or a developing clothing brand. However, obtaining these advantages is not a simple matter. You’ll need a solid strategy, clean compliance, and end-to-end documentation. That’s where Cretum Advisory is specializes in.
Frequently Asked Questions
1. Is this policy only for large companies?
No. The policy specifically offers enhanced incentives for MSMEs, including higher interest subsidies and reimbursements.
2. Do I need to set up in a textile park to get benefits?
Setting up in a notified textile zone/park helps maximize benefits, but some incentives apply outside parks too (especially for MSMEs).
3. Can existing units also apply?
Yes. Brownfield expansion and technology upgradation are also covered under the policy.
4. Is there any support for labour cost?
Yes, the government reimburses ₹3,000 per employee/month for newly created jobs in the textile sector.
5. How long do I get policy benefits?
Most financial benefits are available for 5–7 years, depending on the type and size of your business.