Andhra Pradesh Q2 growth at 10.7% despite 51.8% rainfall deficit
Andhra Pradesh recorded a real Gross State Domestic Product (GSDP) growth of 10.7% in the second quarter of 2025-26, remaining above the national average, according to the July 2026 monthly economic report presented to Chief Minister N. Chandrababu Naidu on Tuesday. The growth came despite a 51.8% rainfall deficit attributed to El Nino conditions.
The state's GSDP growth has accelerated from 6.5% in 2023-24 to 9.9% in 2025-26. Agriculture emerged as the best-performing sector during the quarter with a growth of 13.5%, followed by industry at 10.6% and services at 9.9%. Animal husbandry also showed strength, with meat production rising 9.6% and egg production increasing 5.1%.
Exports and investments recorded robust growth. General exports rose 10.5% to ₹16,322 crore, while STPI exports increased 32.2%. Commercial vehicle registrations grew 51.6%, indicating stronger economic activity. Mega projects worth ₹2.88 lakh crore saw 75.4% growth, and investments of about ₹60,000 crore in MSMEs registered 73.6% growth. GST collections rose 21% to ₹13,282 crore, partly attributed to technology integration in government operations.
The report said the coalition government was maintaining financial discipline while implementing welfare and development programmes.
Chief Minister Naidu directed officials to formulate plans aimed at achieving the state's target of 15% growth through effective resource management. He emphasized measurable targets, technology integration, and data-based corrective action.
Expressing concern over the deficient rainfall, Mr. Naidu called for a contingency plan focusing on water availability and value addition to agricultural and other products. He also asked officials to ensure that growth measures do not impose an additional price burden on the public and suggested forming a committee to examine the issue. He called for regular monitoring reports at district, constituency, and mandal levels to facilitate timely corrective action and improve field-level implementation.
The meeting was attended by Finance and Planning Principal Secretary Piyush Kumar, Planning Department Executive Director V.R. Alaparthi, and senior officials.
