Andhra Pradesh recorded 10.7% economic growth in the second quarter of 2025-26 despite deficient rainfall attributed to El Nino conditions, according to the July 2026 monthly economic report presented to Chief Minister N. Chandrababu Naidu by the Planning Department on Tuesday (August 11, 2026).

The State’s growth rate continued to remain above the national average, and real Gross State Domestic Product (GSDP) growth rose from 6.5% in 2023-24 to 9.9% in 2025-26. Agriculture emerged as the best-performing sector during the quarter, registering 13.5% growth, followed by industry at 10.6% and services at 9.9%.

Animal husbandry also contributed, with meat production increasing 9.6% and egg production 5.1%. General exports rose 10.5% to ₹16,322 crore, while STPI exports increased 32.2% and commercial vehicle registrations grew 51.6%.

Technology integration in government operations contributed to a 21% increase in GST collections, which reached ₹13,282 crore. Investment activity remained strong, with mega projects worth ₹2.88 lakh crore recording 75.4% growth and investments of about ₹60,000 crore in MSMEs registering 73.6% growth.

The report said the coalition government was maintaining financial discipline while implementing welfare and development programmes.

Mr. Naidu directed officials to formulate plans aimed at achieving the State’s target of 15% growth, with effective resource management across departments. He said there should be measurable targets, technology integration and data-based corrective action.

The Chief Minister expressed concern over 51.8% deficient rainfall during the season. He called for a contingency plan focusing on water availability and value addition to agricultural and other products.

He also asked officials to ensure that growth measures do not impose an additional price burden on the public and suggested a committee to examine the issue. He called for regular monitoring reports at district, constituency and mandal levels to facilitate timely corrective action and improve implementation on the ground.

Finance and Planning Principal Secretary Piyush Kumar, Planning Department Executive Director V.R. Alaparthi and senior officials attended the meeting.