Amaravati: Andhra Pradesh's economy grew by 10.7 per cent in the second quarter of 2025-26, officials said on Tuesday, with agriculture recording the highest expansion at 13.5 per cent. Industry and services grew by 10.6 per cent and 9.9 per cent respectively, the Planning Department reported to Chief Minister N. Chandrababu Naidu.
Growth despite El Niño stress
State planners highlighted that the Q2 performance came even as El Niño conditions affected rainfall and water availability in parts of the State. The real Gross State Domestic Product (GSDP) growth rate rose to 9.9 per cent in 2025-26 from 6.5 per cent in 2023-24, and the State maintained a higher growth rate than the national average over the last two years, the presentation to the Chief Minister said.
"Andhra Pradesh recorded 10.7 per cent economic growth in the second quarter of 2025-26 despite the impact of El Niño," the press note said.
Mr Naidu, reviewing the monthly economic report at his camp office, underlined the need for planning and technological adoption across departments to sustain momentum and target an ambitious 15 per cent growth for the State.
Chief Minister urges coordinated action on water and prices
The Chief Minister drew attention to deficient rainfall and lower-than-normal storage in key reservoirs—including Srisailam and Nagarjuna Sagar—which, he said, had been affected by shortfalls in Krishna River inflows. The State has undertaken transfers of Godavari floodwaters to irrigate the Krishna delta in response.
Naidu directed departments to coordinate closely to mitigate the hydrological shortfall's impact on output. He asked officials to adopt data-driven corrective measures and ensure that disruptions did not translate into higher prices for consumers. The Government also proposed forming a committee to examine measures to shield households from inflationary pressure.
Sectoral performance at a glance
- Agriculture: 13.5% growth — highest among sectors reported.
- Industry: 10.6% growth — reflects manufacturing and construction activity.
- Services: 9.9% growth — continued expansion in trade, transport and other services.
| Sector | Q2 2025-26 growth |
|---|---|
| Agriculture | 13.5% |
| Industry | 10.6% |
| Services | 9.9% |
| Total (real GSDP) | 10.7% |
What officials plan next
Planning Department officials asked departments to prepare targeted action plans to meet the State's 15 per cent growth objective despite climatic headwinds. Emphasis was placed on technology integration across government services and more effective resource management at the local level, the review indicated.
Officials also noted declines in groundwater levels across parts of Andhra Pradesh and urged conservation and efficient water-use measures. The Chief Minister sought measures to prevent any fall in economic output arising from water scarcity and to protect small farmers and daily-wage earners from adverse effects.
Implications for residents and businesses
The State's above-national growth performance signals resilience in the face of climatic stress, but officials warned that localised shortages and supply-side constraints could still affect prices of agricultural produce and irrigation-dependent livelihoods. The government's instructions to form a committee on price stability aim to keep the burden off households.
For businesses, the administration’s push for technology adoption across departments could mean faster clearances, improved service delivery and potential efficiency gains. The review meeting included Chief Secretary G. Sai Prasad and senior officials from multiple departments.
Moving forward, the State will need to balance short-term mitigation—water transfers, targeted relief—with medium-term investments in water infrastructure, crop diversification and climate-resilient practices to sustain the higher growth trajectory, officials said.
