Economy of Andhra Pradesh is back on track, says CM Chandrababu Naidu

Published 4 August 2026 · politics

Andhra Pradesh Chief Minister N. Chandrababu Naidu has asserted that the Democratic Alliance (NDA) government had restored confidence in the people, revived economic activity and

Andhra Pradesh Chief Minister N. Chandrababu Naidu has asserted that the Democratic Alliance (NDA) government had restored confidence in the people, revived economic activity and put the State back on the path of growth after “a period of decline between 2019 and 2024”. Presenting a report on the government’s performance during its first two years in office and the State’s financial position, Mr. Naidu said the administration had focused on welfare, infrastructure development, investment promotion and fiscal discipline. “The Central government has extended a helping hand to Andhra Pradesh, which was on a ventilator due to the mismanagement and policies of the previous government. We are thankful to the Centre,” he said. Comparing economic performance across periods, Mr. Naidu said the State’s Gross State Domestic Product (GSDP) growth rate has gone up to 11.3 per cent over the past two years, after falling from 13.5 per cent in the 2014-19 period to 10.3 per cent between 2019 and 2024.

“Had the earlier growth rate been maintained, Andhra Pradesh would have generated an additional ₹6.94 lakh crore in output and earned ₹76,195 crore more in revenue,” he said. Naidu said the per capita income stood at ₹2,94,507 in 2025-26 and alleged that the gap between Andhra Pradesh and Telangana has widened in recent years. Capital expenditure He said capital expenditure has increased one and a half times during the last two years, with ₹10,000 crore spent on Amaravati, ₹8,300 crore on Polavaram, ₹5,437 crore on ports, ₹2,302 crore on airports and ₹3,439 crore on roads. Naidu said investment proposals worth ₹23 lakh crore had been secured, while projects valued at ₹11.37 lakh crore had already been grounded. Defending public-private partnership (PPP) projects, he said ownership of the assets would continue to remain with the government.

The Chief Minister said the government had renegotiated 370 loans worth ₹1.5 lakh crore, a move expected to save ₹1,100 crore annually and ₹8,269 crore in the long term. He said several Centrally schemes, which had become defunct during the previous administration, have been revived. Economic regions Naidu said the State has adopted a “double-engine” governance model and a “triple-engine growth strategy” focusing on Visakhapatnam, Amaravati and Tirupati economic regions, while developing Rayalaseema as a horticulture hub. According to Mr. Naidu, the Visakhapatnam Economic Region alone is expected to attract investments worth ₹10 lakh crore and create 24 lakh jobs, while the Amaravati and Tirupati regions are projected to receive investments worth ₹8 lakh crore and ₹12 lakh crore, respectively. Emphasising the importance of fiscal discipline, the Chief Minister said salary and pension commitments continued to exert considerable pressure on the State’s finances, accounting for nearly 96 per cent of revenue receipts.