Despite El Niño crisis Andhra Pradesh records 10.7 per cent growth in Q2 of 2025-26

Despite El Niño crisis Andhra Pradesh records 10.7 per cent growth in Q2 of 2025-26

• Agriculture registers highest growth of 13.5 per cent, industry 10.6 per cent and service sector 9.9 per cent
• CM directs officials to focus on comprehensive plans to achieve 15 per cent growth rate
• CM suggests formation of a committee to see common man should not face any additional price burden

Amaravati:

Andhra Pradesh registering steady economic growth as per the July 2026 monthly economic report. It may be noted that the State’s growth rate remained higher than the national growth rate for the past two years. The State’s real Gross State Domestic Product (GSDP) growth rate increased from 6.5 per cent in 2023-24 to 9.9 per cent in the 2025-26 financial year.The monthly economic report highlighted significant growth across the agriculture, industrial and services sectors. The planning department officials presented the July 2026 economic report to Chief Minister N Chandrababu Naidu at Camp office here today.

During the second quarter of 2025-26, the agriculture sector recorded a growth of 13.5 per cent, while the industrial and services sectors registered growth of 10.6 per cent and 9.9 per cent respectively, providing strong support to the State economy.In the animal husbandry sector, meat production grew by 9.6 per cent and egg production by 5.1 per cent. The services sector witnessed strong activity in IT, transport and trade. General exports recorded a growth of 10.5 per cent, reaching Rs.16,322 crore. STPI exports increased by 32.2 per cent, while registration of commercial vehicles recorded a growth of 51.6 per cent.Technology integration undertaken by the State government has contributed to a 21 per cent increase in GST collections, which reached Rs.13,282 crore.

Investment inflows into the State have also remained encouraging. Grounding of mega projects worth Rs.2.88 lakh crore recorded 75.4 per cent growth, while MSME investments of around Rs.60,000 crore registered 73.6 per cent growth.Tax and non-tax revenues have also registered significant growth. As a result, the coalition government is maintaining financial discipline while effectively implementing welfare programmes for the people.
Chief Minister Chandrababu Naidu directed Planning Department officials to formulate plans to ensure that the State achieves its GSDP targets even during El Niño crises. He called for a comprehensive approach that takes into account factors ranging from the State level to the field level.The Chief Minister stressed the need for effective technology integration across all government departments, on the lines of the Commercial Taxes Department, to improve performance and achieve targets.He noted that the State is experiencing deficient rainfall due to the impact of El Niño. With inadequate inflows into the Krishna River, projects such as Srisailam and Nagarjuna Sagar have not yet reached full reservoir levels. He said the State had diverted floodwaters from the Godavari to provide water to the Krishna Delta.With groundwater levels also declining, the Chief Minister directed officials to coordinate with various departments and take necessary measures to ensure that economic output does not decline. He called for comprehensive analysis of available data and corrective action wherever gaps are identified.

The Chief Minister directed every government department to undertake effective resource management to achieve the highest possible targets. He called for measurable standards and stressed that plans must deliver tangible results.Every plan formulated by the government should contribute to increasing the State’s growth rate, he said. He also directed officials to ensure that the common man does not face any additional price burden and suggested the formation of a committee to examine the issue.The Chief Minister called for a contingency plan covering critical aspects such as water availability and value addition to agricultural and other products. He directed officials to undertake all necessary measures to achieve the State’s target of 15 per cent growth.He also stressed the need to ensure that exports to international markets are not adversely affected. Providing reports at the district, constituency and mandal levels would make it easier to monitor progress and achieve targets, the Chief Minister said.

Principal Secretary, Finance and Planning Piyush Kumar, Executive Director, Planning Department, V.R. Alaparthi, CMO Officials Rajamouli and Pradyumna, Dr.Shanthi Priya Pandey, Special Secretary to Government, Planning Department. B. Gopal, Director, Directorate of Economics and Statistics were present.