The services sector continued to witness strong activity in IT, transportation and commerce. General exports registered 10.5 percent growth, reaching ₹16,322 crore.
The Gross State Domestic Product (GSDP) of Andhra Pradesh grew at 10.7 percent in the first quarter of the current financial year, according to the Economic Report released by the State Government for the month of July 2026.The growth in the state remained higher than the national growth rate for the past two years as the real growth rate of GSDP increased from 6.5 per cent in 2023-24 to 9.9 per cent in 2025-26 driven by `significant’ growth across the agriculture, industrial and services sectors in the State. The industrial production increased by 8.2 per cent compared to June 2026, the report said. While the spice production recorded a three-fold growth during the April-June period, reaching 89,383 metric tonnes, vegetable production also registered a growth of 45 per cent. In the livestock sector, meat production increased by 9.6 per cent, egg production by 5.1 per cent and marine shrimp production by 17 per cent.strong activityThe services sector continued to witness strong activity in IT, transportation and commerce. General exports registered 10.5 percent growth, reaching . ₹16,322 crore. STPI exports grew by 32.2 per cent, while commercial vehicle purchases recorded a significant 51.6 percent growth, as per the report. Technology integration undertaken by the State Government has helped improve GST collections, which grew by 21 per cent to ₹13,282 crore. Mineral production increased by 17.9 per cent, while power consumption grew by 22.2 per cent.Tourist arrivals also increased significantly during July. The state received 3.10 crore domestic tourists and 35,951 foreign tourists during the month, according to the report. The investment inflow into the state remained encouraging. Grounding of mega projects worth ₹2.88 lakh crore registered 75.4 per cent growth, while investments of around ₹60,000 crore in the MSME sector recorded 73.6 per cent growth. Tax and non-tax revenues also registered significant growth.The State was experiencing deficient rainfall due to the impact of El Niño. As there had been inadequate inflows into the Krishna River, projects such as Srisailam and Nagarjuna Sagar had not yet reached full capacity, according to the report. Published on August 11, 2026
