VIJAYAWADA: Despite El Nino challenge, Andhra Pradesh has registered a steady economic growth rate, according to the July 2026 Monthly Economic Report.
The report states that the State’s growth rate has remained higher than the national average for the past two years. The real growth rate of the Gross State Domestic Product (GSDP) increased from 6.5% in 2023-24 to 9.9% in 2025-26. The Monthly Economic Report highlighted significant growth across agriculture, industrial and services sectors in the State.
Planning Department officials presented the economic report to Chief Minister N Chandrababu Naidu at his Camp Office in Undavalli on Tuesday.
The report stated that industrial production increased by 8.2% compared to June 2026. Spices production recorded a remarkable 304% growth during the April-June period, reaching 89,383 metric tonnes. Vegetable production also registered a growth of 44.8%.
In the livestock sector, meat, egg and marine shrimp production increased by 9.6%, 5.1% and 17% respectively.
Services sector continued to witness strong activity in IT, transportation and commerce. General exports registered 10.5% growth, reaching Rs 16,322 crore. STPI exports grew by 32.2%, while commercial vehicle purchases recorded a significant 51.6% growth.
Technology integration undertaken by the State government has helped improve GST collections, which grew by 21% to Rs 13,282 crore. Mineral production increased by 17.9%, while power consumption grew by 22.2%.Tourist arrivals also increased significantly in July. The State received 3.10 crore domestic and 35,951 foreign tourists during the month.
Use resources to maximise growth: CM to departments
The investment inflow into the State remained encouraging. Grounding of mega projects worth Rs 2.88 lakh crore registered 75.4% growth, while investments of around Rs 60,000 crore in the MSME sector recorded 73.6% growth. Tax and non-tax revenues also registered significant growth.
During the second quarter of 2025-26, the agriculture sector recorded 13.5%, while the industrial and services sectors registered 10.6% and 9.9% growth respectively, providing strong support to the State economy.
As a result, the NDA government is implementing welfare programmes effectively while maintaining financial discipline.
The Chief Minister directed the officials to formulate plans to achieve the State’s GSDP targets even during the challenging situation such as El Nino. He stressed the need to effectively integrate technology across all government departments, on the lines of the Commercial Taxes Department, to achieve their respective targets.
He said the State was experiencing deficient rainfall due to the impact of El Nino. As there had been inadequate inflows into the Krishna river, projects such as Srisailam and Nagarjuna Sagar had not yet reached full capacity. He noted that floodwaters from the Godavari river had been diverted to meet the irrigation needs of the Krishna Delta. With groundwater levels also declining, he directed departments to coordinate and implement measures to prevent any adverse impact on the GSDP.
He called for comprehensive analysis of data and corrective measures to address shortcomings. Every government department should manage its resources in a manner that enables it to achieve the highest growth target, he said. Every plan formulated by the government should contribute to increasing the State’s growth rate, he said, while stressing that no additional price burden should fall on the people.
He directed the officials to prepare indicative contingency plans focusing on water availability, value addition to products and other critical factors.
Naidu called for corrective action to achieve the State’s target of a 15% growth rate. He also directed officials to ensure that there was no adverse impact on products intended for export to international markets..
Principal Secretary (Finance and Planning) Piyush Kumar, Joint Secretary Shanti Priya Pandey, Planning Department Director B Gopal, AP State Development Planning Society (APSDPS) ED VR Alaparthi and others participated.