Applications Invited for the Andhra Pradesh MSME Digital Empowerment Challenge 2025

About the Challenge

Micro, Small and Medium Enterprises (MSMEs) sector stands as one of the strongest pillars of India’s economy. With 7.34 crore units spread across the country, MSMEs are a true engine of growth, contributing 30.1% of the nation's Gross Value Added (GVA) and generating livelihoods for over 11 crore people—second only to agriculture in employment. Furthermore, MSMEs are crucial to India’s global footprint and innovation capacity, driving 45.79% of total exports in 2024–25, valued at over INR 12.39 lakh crore. This figure dramatically demonstrates the sector’s rising competitiveness, representing nearly a three-fold increase in export value since 2020–21.

Despite this impressive trajectory, deep-rooted structural challenges persist. Millions of entrepreneurs are hampered by limited access to affordable and timely credit, often stemming from weak or incomplete project documentation. For exporters, the burden of complex compliance requirements, certifications, and readiness checks restricts their ability to compete effectively in lucrative international markets. The digital divide is also pronounced: while an overwhelming 91% of MSMEs acknowledge the importance of Artificial Intelligence (AI) for future competitiveness, nearly 59% are unable to integrate it due to significant barriers like high costs, low technical awareness, and limited capabilities. Recognizing these obstacles, the Government of India is strongly focused on overcoming them through targeted efforts to foster digital adoption, promote AI-enabled solutions, and drive innovation-driven facilitation across the MSME landscape.

MSME Innovation Challenges

Building on this foundation, Andhra Pradesh MSME Development Corporation is now floating three national innovation challenges, inviting startups, MSMEs, Researchers, Academicians, and technology providers across India to co-create scalable solutions:

• AI-Based Tool for Detailed Project Report (DPR) Preparation – automating high-quality, bankable proposals to unlock credit and investment access.
• AI-Powered Chatbot for MSME ONE Portal – enabling real-time, multilingual support and guidance for entrepreneurs
• SaaS-Based Cross-Border Export Console for MSMEs – simplifying compliance, documentation, and readiness assessment for MSMEs aspiring to expand globally.-

Through these challenges, Andhra Pradesh seeks to pilot solutions with national scalability, positioning itself as a testbed and lighthouse for India’s MSME digital transformation. This is not just a state initiative—it is a national call to innovators to harness AI, automation, and digital tools to uplift millions of MSMEs and accelerate India’s journey towards becoming a globally competitive MSME powerhouse.

Awards & Procurements

• As per G.O.Ms.No.33 (Government of Andhra Pradesh), winning teams are eligible for direct government work orders/contracts up to INR1 Crore
• As per G.O.Ms.No.2 (Government of Andhra Pradesh) relaxation of norms in Public Procurement that are up to Rs.50.00 Lakh in value – Orders

Eligibility

• Students, Startups, Researchers, MSMEs, and Service Providers across India to co-create AI-driven and SaaS solutions that empower Andhra Pradesh’s MSMEs for growth, funding, and global competitiveness.

How to Apply

Application Deadlines for the Andhra Pradesh MSME Digital Empowerment Challenge 2025 of Rs. 5000000 are: October 27th

Interested teams should submit a detailed technical proposal through the APIS Innovation Challenges Portal (https://apisinnovationchallenges.ap.gov.in/#/)

For more information please check this Link

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