AP economy grows 10.7% despite El Nino

Metro India News | AMARAVATI 

Andhra Pradesh recorded a 10.7 per cent economic growth in the second quarter of 2025-26 despite the impact of El Niño, with agriculture emerging as the fastest-growing sector at 13.5 per cent, according to the July 2026 monthly economic report presented to Chief Minister N Chandrababu Naidu on Tuesday. The industrial sector registered 10.6 per cent growth, while services grew by 9.9 per cent, providing broad-based support to the State economy.

The report noted that Andhra Pradesh’s real GSDP growth increased from 6.5 per cent in 2023-24 to 9.9 per cent in 2025-26, remaining above the national growth rate for the past two years. Exports also showed strong growth, with general exports rising 10.5 per cent to Rs.16,322 crore. STPI exports increased 32.2 per cent, while GST collections rose 21 per cent to Rs.13,282 crore.

Grounding of mega projects worth Rs.2.88 lakh crore increased 75.4 per cent, while MSME investments of around Rs.60,000 crore recorded 73.6 per cent growth. Reviewing the report, the Chief Minister directed officials to prepare comprehensive contingency plans to protect economic growth from the impact of deficient rainfall and declining groundwater levels.

He noted that inadequate inflows into the Krishna River had affected reservoir levels at Srisailam and Nagarjuna Sagar.  He also directed officials to ensure that the common man does not face any additional price burden and suggested forming a committee to examine the issue. Setting an ambitious target, the Chief Minister directed officials to work towards achieving 15 percent growth while safeguarding agricultural output, water availability and international exports.