Despite climate challenges, Andhra Pradesh reports robust 9.9% GDP growth in 2025-26, propelled by agriculture, industry, and services sectors, alongside rising fiscal and investment flows.
Andhra Pradesh is reporting stronger-than-expected economic momentum, with the state government saying its real gross state domestic product growth rose to 9.9% in 2025-26 from 6.5% in 2023-24, according to the monthly economic report for July 2026 presented to Chief Minister N Chandrababu Naidu in Amaravati.
The report said the second quarter of 2025-26 brought broad-based gains across the economy. Agriculture expanded 13.5%, while industry grew 10.6% and services 9.9%, helping offset the strain from weak monsoon conditions and poor inflows into the Krishna basin.
Officials said output in animal husbandry also improved, with meat production up 9.6% and egg production rising 5.1%. Services activity was supported by information technology, transport and trade, while general exports climbed 10.5% to ₹16,322 crore. STPI exports rose 32.2% and commercial vehicle registrations increased 51.6%, both signs of firmer business activity.
The report also pointed to rising fiscal and investment flows. GST collections increased 21% to ₹13,282 crore, helped by what the state described as better technology integration. Grounding of mega projects worth ₹2.88 lakh crore rose 75.4%, while MSME investments of about ₹60,000 crore increased 73.6%.
Naidu told officials to build contingency plans so the state can still meet its 15% growth target despite the El Niño-related shortfall in rainfall. He said departments need to use data more effectively, improve resource management and ensure that higher growth does not lead to additional pressure on ordinary consumers. He also asked for district, constituency and mandal-level reporting to sharpen monitoring and speed up corrective action.
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