Andhra Pradesh recorded 10.7% economic growth in Q2 of 2025-26 despite El Niño. CM Chandrababu Naidu directed officials to target 15% growth through technology, resource management and contingency planning.
Amaravati: Andhra Pradesh recorded 10.7% economic growth in the second quarter of 2025-26, despite the challenges posed by El Niño conditions, according to the July 2026 monthly economic report presented to Chief Minister N. Chandrababu Naidu.
The state's Planning Department presented the report at the Chief Minister's Camp Office, highlighting growth across agriculture, industry and services. The report noted that Andhra Pradesh's growth rate has remained above the national growth rate over the past two years.
The state's real Gross State Domestic Product (GSDP) growth increased from 6.5% in 2023-24 to 9.9% in 2025-26, according to the report.
Agriculture emerged as the fastest-growing major sector during Q2 of 2025-26, recording 13.5% growth.
The industrial sector grew by 10.6%, while the services sector registered 9.9% growth, providing broad-based support to the state economy.
Within allied agricultural activities, meat production increased by 9.6% and egg production by 5.1%.
The services sector recorded strong activity in areas including information technology, transport and trade.
Andhra Pradesh's general exports grew by 10.5%, reaching Rs. 16,322 crore.
Exports through Software Technology Parks of India (STPI) increased by 32.2%, while registration of commercial vehicles rose by 51.6%.
The report also attributed a 21% increase in GST collections to technology integration undertaken by the State Government. GST collections reached Rs. 13,282 crore.
Investment activity also showed significant growth.
The grounding of mega projects worth Rs. 2.88 lakh crore recorded a 75.4% increase, while MSME investments of around Rs. 60,000 crore grew by 73.6%.
The report also highlighted growth in tax and non-tax revenues, stating that the government was maintaining financial discipline while continuing welfare programmes.
Reviewing the report, Chandrababu Naidu directed Planning Department officials to prepare comprehensive strategies to ensure that Andhra Pradesh continues to achieve its economic growth targets despite El Niño-related challenges.
He called for planning that connects the State, district, constituency, mandal and field levels, with measurable targets and clearly defined outcomes.
The Chief Minister stressed the need for greater use of technology across government departments, similar to the systems adopted by the Commercial Taxes Department, to improve efficiency and performance.
Naidu noted that deficient rainfall associated with El Niño had affected water availability in the state.
With inflows into the Krishna River remaining inadequate, reservoirs including Srisailam and Nagarjuna Sagar had not reached their full levels, he said.
The state had diverted floodwaters from the Godavari to the Krishna Delta to address water requirements, while declining groundwater levels remained another concern.
The Chief Minister directed officials to coordinate across departments and take corrective measures to ensure that water constraints do not adversely affect economic output.
Naidu also directed officials to ensure that efforts to achieve higher economic growth do not place an additional financial burden on ordinary citizens.
He suggested the formation of a committee to examine price-related issues and identify measures to prevent unnecessary increases in the cost of essential goods and services.
He called for a contingency plan covering critical areas including water availability, agricultural production and value addition to farm and other products.
The Chief Minister directed every government department to strengthen resource management and work towards achieving the highest possible targets.
He said every government plan should contribute to improving the state's overall growth rate and should be evaluated against measurable outcomes.
Naidu also stressed the need to protect the state's exports from disruptions in international markets.
He called for economic performance reports at the district, constituency and mandal levels to improve monitoring and enable timely corrective action.
The Chief Minister reiterated the government's target of achieving 15% growth and directed officials to take all necessary measures to sustain the state's economic momentum despite climate and resource challenges.
Principal Secretary, Finance and Planning Piyush Kumar, Executive Director, Planning Department V.R. Alaparthi, CMO officials Rajamouli and Pradyumna, Special Secretary to Government, Planning Department Dr. Shanthi Priya Pandey, and Director, Directorate of Economics and Statistics B. Gopal attended the review.
