Andhra Pradesh posts 11.28% growth in Q2, Naidu says State is on revival mode

Andhra Pradesh has made a remarkable turnaround from economic collapse to double-digit growth within a year, marking the difference between destructive politics and responsible governance, Chief Minister N. Chandrababu Naidu said while releasing the Q2 economic report for 2025–26.

Addressing a press conference at the Secretariat on Monday, Mr. Naidu said Andhra Pradesh had registered a strong economic revival in the second quarter of 2025–26, significantly outperforming the national average. The State posted a growth rate of 11.28%, compared to India’s GDP growth of 8.7% during the same period. Gross Value Added rose from 10.26% in Q2 2024–25 to 11.30% in Q2 2025–26, reflecting broad-based gains across agriculture, industry and services.

He said industrial growth touched 12.20%, driven by an 18.43% rise in mining and 19.12% in power generation, along with solid performances in agriculture and real estate. These results prove that good governance, not gimmicks, drives growth, he said. The State has secured investment commitments worth over ₹13 lakh crore, with ₹8 lakh crore cleared by the State Investment Promotion Board. Andhra Pradesh is moving from a ventilator State to a revival path, he said, adding that long-term reforms and faster decision-making would shape Brand Andhra Pradesh and accelerate development. Mr. Naidu criticised the previous administration for bankrupting the State through reckless borrowing and mismanagement, pushing Andhra Pradesh into a GSDP loss of ₹7 lakh crore and a revenue collapse of ₹76,195 crore. “They buried the State under debt; we are rebuilding it brick by brick,” he said.

Per capita income has risen to ₹2,66,240, above the national average. Sustained double-digit growth, he said, would help the State achieve the Swarna Andhra 2047 Vision of a ₹292 lakh crore GSDP and a ₹49 lakh per capita income. This is the beginning of Andhra Pradesh’s economic renaissance, he said. Brand A.P. is rising again. However, significant fiscal challenges remain. The previous YSRCP government had borrowed ₹10 lakh crore during its tenure, placing enormous pressure on debt servicing. Meeting existing commitments itself is a challenge, let alone taking fresh loans, he said. The State has decided to reschedule debt servicing within this financial year, with a focus on sustainable capital expenditure to ensure fiscal stability and long-term growth.