Andhra Pradesh reports a remarkable 10.7% economic expansion in Q1, driven by agricultural, industrial, and service sector gains, amidst a drought backdrop and aggressive investment promotion.
Andhra Pradesh’s economy expanded 10.7% in the first quarter of the current financial year, according to the state government’s July 2026 economic report, underscoring a run of growth that officials say has outpaced the national average for two years. The report said the state’s real GSDP growth has risen from 6.5% in 2023-24 to 9.9% in 2025-26, helped by gains across agriculture, industry and services.
The figures point to broad-based momentum in the state’s farm economy. Between April and June, spice output tripled to 89,383 metric tonnes and vegetable production rose 45%. Livestock output also improved, with meat production up 9.6%, egg output up 5.1% and marine shrimp production up 17%, according to the report. Industrial production increased 8.2% from June 2026, while the services sector stayed firm on the back of information technology, transport and trade.
The state also reported stronger revenue and commercial activity. GST collections rose 21% to ₹13,282 crore after what the report described as improved technology integration by the government. Mineral production increased 17.9%, power consumption climbed 22.2% and general exports advanced 10.5% to ₹16,322 crore. STPI exports, which largely cover software and other technology services, grew 32.2%, while commercial vehicle purchases jumped 51.6%.
Tourism and investment added to the positive picture. Andhra Pradesh received 3.10 crore domestic tourists and 35,951 foreign visitors in July, while grounded mega projects worth ₹2.88 lakh crore rose 75.4% and MSME investments of about ₹60,000 crore climbed 73.6%. The report, however, noted that rainfall remained deficient because of El Niño, leaving inflows into the Krishna river low and preventing reservoirs such as Srisailam and Nagarjuna Sagar from reaching full capacity. That weather strain sits alongside a broader push by Chief Minister N Chandrababu Naidu’s government to market Andhra Pradesh as an investment destination, with tourism and industrial policy both being used to support growth. According to the state’s tourism policy, Andhra Pradesh wants to lift its profile as a destination for domestic and foreign travellers.
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