The State’s GSDP at current prices grew 11.28 percent in Q2 (July to September), significantly higher than India’s 8.7 percent during the same period.
Published Dec 09, 2025 | 12:20 AM ⚊ Updated Dec 09, 2025 | 12:20 AM
Across sectors, Andhra Pradesh’s numbers remained consistently higher than the national average.
Synopsis: Andhra Pradesh reported strong economic growth in the second quarter of the 2025–26 financial year, with its GSDP and GVA rising by more than 11 percent each and outpacing national averages across all major sectors. Chief Minister N Chandrababu Naidu said the figures showed “early signs of recovery” but stressed that the State is still dealing with the effects of bifurcation and what he described as severe damage under the previous government.
Andhra Pradesh has registered a strong economic rebound in the second quarter of FY 2025–26, posting growth rates that outpaced national averages across sectors.
Chief Minister N Chandrababu Naidu, presenting the latest Gross State Domestic Product (GSDP) and gross value added (GVA) figures on the morning of Monday, 8 December, said the “early signs of recovery” are encouraging but cautioned that the State is still grappling with deep structural damage inflicted during the past decade.
The State’s GSDP at current prices grew 11.28 percent in Q2 (July to September), significantly higher than India’s 8.7 percent during the same period. Andhra Pradesh recorded ₹4,00,377 crore in GSDP, up from ₹3,59,778 crore in Q2 last year, an official release said.
GVA also remained strong. The State posted 11.30 percent growth compared to the national 8.7 percent, marking its highest quarterly performance in more than three years.
Across sectors, Andhra Pradesh’s numbers remained consistently higher than the national average in Q2 2025–26:
The sharp contrast in agriculture particularly stands out. India’s agriculture sector continues to face uneven monsoons and declining farm income, but Andhra Pradesh’s double-digit growth signals both sectoral resilience and favourable seasonal conditions.
According to senior officials present at the briefing, the industrial rebound is driven by increased manufacturing activity in coastal zones, while the services sector benefited from expanded logistics, financial services and digital business activity.
Despite the positive numbers, Naidu framed the data within a larger narrative of reconstruction.
He said the State is “recovering from a period of institutional collapse” that followed bifurcation and was worsened by what he described as the “destructive governance” of the previous Yuvajana Sramika Rythu Congress Party government.
“Because of the governance failures between 2019 and 2024, Andhra Pradesh lost nearly ₹7 lakh crore in GSDP,” Naidu said. “This happened because our growth engine came to a halt.”
He added that the slowdown directly caused the State to lose ₹76,195 crore in revenue, a loss he said continues to constrain fiscal room for development expenditure.
Naidu also blamed the previous administration for raising loans at “exorbitantly high interest rates,” pushing the State into a severe debt trap.
“When a State’s brand weakens, lenders increase the interest rate. We are now forced into debt rescheduling, something that should never happen to a well-managed economy.”
The Chief Minister argued that the State continues to feel the aftershocks of the 2014 bifurcation, which he said left Andhra Pradesh without proportionate institutional structures, revenue streams or administrative continuity.
“Bifurcation caused systemic loss. Several institutions that formed the backbone of governance were pulled away,” he said.
“The IT policy we designed 25 years ago ensured that the per capita income of Telugu people became one of the highest. My focus has always been on improving people’s standards of living.”
The Chief Minister described the latest quarter’s performance as an “inflection point” but emphasised that sustained growth would depend on stable governance, stronger public institutions and aggressive investment attraction.
According to official sources, the upcoming January to March quarter will be crucial, as it will show whether Andhra Pradesh can maintain double-digit growth while also pursuing fiscal consolidation.
While the State has posted impressive quarterly numbers, Naidu’s address underscored that Andhra Pradesh is entering a rebuilding phase, not merely a cyclical economic recovery.
He framed the new data as evidence that the State’s long-term trajectory can be corrected, provided administrative reforms, debt restructuring and sectoral investment plans continue without disruption.
The next budget session in 2026 is set to be a decisive test of the government’s ability to translate this momentum into structural fiscal reforms and capital expenditure growth.
