Andhra Pradesh Posts 10.7% Growth Despite El Niño, Eyes 15% Target

Andhra Pradesh has recorded 10.7% economic growth in the second quarter of 2025-26 despite El Niño-related weather pressures, with agriculture, industry and services all registering robust expansion. The performance has prompted the State government to aim for an ambitious 15% growth rate while focusing on water security, investment execution and job creation.

The figures were presented to Chief Minister N. Chandrababu Naidu by Planning Department officials during a review of the July 2026 monthly economic report. Agriculture led the three major sectors with 13.5% growth, followed by industry at 10.6% and services at 9.9%.

The agricultural performance is notable amid concerns over rainfall and water availability. Spice production reached 89,383 metric tonnes between April and June, while vegetable production increased 44.8%. Meat, egg and marine shrimp production grew by 9.6%, 5.1% and 17%, respectively.

However, the government faces a significant challenge in sustaining this momentum. Lower rainfall and reduced Krishna River inflows have affected water levels in the Srisailam and Nagarjuna Sagar reservoirs, while groundwater levels are also declining. The State has diverted Godavari floodwaters to meet irrigation requirements in the Krishna Delta.

Beyond agriculture, industrial production increased 8.2% in July, while the minerals sector and electricity consumption grew 17.9% and 22.2%, respectively. General exports rose 10.5% to ₹16,322 crore, with STPI exports registering 32.2% growth. GST collections increased 21% to ₹13,282 crore.

Investment and services are emerging as additional growth pillars. Mega projects worth around ₹2.88 lakh crore have recorded strong progress, while IT, transport and trade activity has expanded. The State also recorded 3.10 crore domestic tourist visits and 35,951 foreign tourist visits in July.

The Chief Minister has directed departments to pursue the 15% growth target through greater use of technology, data-driven governance and efficient resource management. The strategy will also need to strengthen manufacturing, ports and logistics, MSMEs, agricultural value chains and modern services such as IT and digital infrastructure.

With climate risks intensifying, water management could ultimately determine the durability of AP’s growth momentum. The State’s challenge is now to convert strong headline growth into productive investment, employment, higher-value exports and resilient incomes.