Trade Analytics

Industrial Development & Economic Growth in Andhra Pradesh

Latest update: September, 2019

Economic Snapshot: GSDP of Andhra Pradesh
Per capita Income of Andhra Pradesh


September, 2019

The erstwhile state of Andhra Pradesh has been bifurcated into two states, Telangana and residuary Andhra Pradesh (Seemandhra), by the Andhra Pradesh Reorganisation Act, 2014 or the Telangana Act. The act consisted of the aspects of division of assets and liabilities, the boundaries of the proposed new states and status of the capital city Hyderabad after the separation of the state.

Pre-separation, Andhra Pradesh was one of the relatively faster growing states in the country. Between 2011-12 and 2019-20, Gross State Domestic Product (GSDP) expanded at a Compound Annual Growth Rate (CAGR) of 19.05 per cent to US$ 154.62 billion whereas the Net State Domestic Product (NSDP) expanded at a CAGR of 16.43 per cent to US$ 121.20 billion in 2018-19

Merchandise exports from Andhra Pradesh have increased to US$ 13.02 billion in 2017-18 from US$ 11.94 billion in 2016-17. In 2018-19 merchandise exports reached US$ 14.08 billion. As of March 2019, Andhra Pradesh has 19 operational SEZs, 32 SEZs with formal approvals, four SEZs with in-principle approvals and 27 with notified approvals.

Andhra Pradesh has been one of the foremost states to have developed sector-specific policies. Forming industrial clusters and developing infrastructure, such as biotech parks, textile parks and hardware parks, has been the state's key strategy to attract investments in various industries.

According to the Department for Promotion of Industry and Internal Trade (DPIIT), FDI inflows in Andhra Pradesh between April 2000 and March 2019 reached US$ 18.46 billion.

Natural resources, policy incentives and infrastructure in the state are favourably suited for investments in major sectors such as drugs and pharmaceuticals, biotechnology, IT and ITeS, mines and minerals, textiles, leather and tourism.

Seemandhra, comprising Rayalaseema and coastal Andhra, has most of the power projects of undivided Andhra Pradesh. Coal based power plants are mostly located in the state due to proximity to the ports. The Visakhapatnam port ranks fourth in terms of port traffic in India. It handled 63.54 million tonnes of traffic during 2017-18. Traffic handled during April 2018-March 2019 reached 65.30 million tonnes.

The Union Government has planned to develop metro rail projects at three locations in the state, including Visakhapatnam, Guntur and Vijayawada. The projects have received approval and now will be going to source funds.

JSW Group signed a MoU with the Andhra Pradesh Economic Development Board. The company will investment of Rs 4,500 crore (US$ 658.28 million) for building a jetty at Ramayapatnam Port and plans to expand their logistic footprint.

Note: ^CAGR in Rs terms

Andhra Pradesh State Presentation

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Andhra Pradesh Map

Andhra Pradesh