Amaravati, September 10: Andhra Pradesh’s economy expanded by 10.5% in the first quarter of the 2025/26 financial year, surpassing India’s national GDP growth of 8.8%, with strong performances in industry, services and agriculture, state officials said on Tuesday.
According to estimates from the state’s Planning Department, Andhra Pradesh’s Gross Value Added (GVA) reached 3.58 trillion rupees ($42.9 billion), compared with a 9.6% growth rate in the same period last year.
Chief Minister N. Chandrababu Naidu, reviewing the figures at his camp office, welcomed the double-digit growth but urged officials to pursue the state’s ambitious 17.1% target for the next fiscal year. He called for sector-specific strategies, deeper growth records and a sharper focus on untapped areas such as tourism, where he has set a 25% growth goal.
The industrial sector recorded 11.9% growth, driven by a 43.5% surge in mining and quarrying, along with strong gains in manufacturing and construction. Output of minerals such as road metal and granite rose significantly, officials said.
The services sector grew by 10.7%, with tourism, hotels and transport posting nearly 18% growth. Tourist arrivals climbed to 80.7 million in the quarter, while air passenger traffic rose 21% year-on-year to 1.6 million. Real estate and professional services expanded by 11.7%.
Agriculture grew by 9.6%, supported by livestock production worth 467.5 billion rupees, a 14.5% rise in aquaculture, and higher meat and egg production.
Naidu told officials the state must not only outperform national benchmarks but also aim for international standards. “Andhra Pradesh has inherent advantages – a long coastline, abundant water resources, and improving infrastructure – and we must harness them fully,” he said.