Andhra Pradesh – Economy

The economy of Andhra Pradesh is one of the fastest growing economies in India, with growth outstripping that of the wider Indian economy in the past few years. The GSDP at constant Prices for the year 2018-19 is estimated at ₹850,000 crores as against ₹490,134 crores for 2015-16 indicating a growth of 11.61%.

GSDP

In 2014–15, the state ranked eighth in GSDP at current prices, which stood at ₹5,200.3 billion (US$73 billion). It recorded 12.03% growth compared to previous fiscal which was ₹4,641.84 billion (US$65 billion). While, at constant prices, the GSDP of the state for 2014–15 was ₹2,645.21 billion (US$37 billion), compare to ₹2,467.24 billion (US$35 billion) of 2013–14.

In 2012–13, the Gross State Domestic Product (GSDP) of Andhra Pradesh at constant prices stood at ₹2,359.3 billion (US$33 billion) and the Gross State Domestic Product at current prices for the same fiscal year stood at ₹4,193.91 billion (US$59 billion). The per capita income of the state increased by 6.26% from ₹25,959 (US$360) (2004–05) to ₹42,186 (US$590) (2012-13).

This is a chart of trend of gross state domestic product of Andhra Pradesh at market prices by Ministry of Statistics and Programme Implementation with figures in billions of Indian rupees.


Agriculture and Livestock

Agriculture has been the chief source of income and main occupation for the state with 60% of population engaged in agriculture and related activities. Rice is the major food crop and staple food of the state. Other important crops are sugarcane, cotton, mango, tobacco, Maize, pulses etc. Four important rivers of India, the Godavari, Krishna, Penna, and Tungabhadra flow through the state, providing irrigation. Recently, crops used for vegetable oil production such as sunflower and peanuts have gained favour. There are many multi-state irrigation projects in development, including Godavari River Basin Irrigation Projects and Nagarjuna Sagar Dam.

Agriculture, dominated by the production of food grains, is a major, although declining, sector of the state’s economy, in terms of value. Andhra Pradesh is one of the leading rice-growing states in the country and is a major producer of India’s tobacco. The state’s rivers—particularly the Godavari and the Krishna, but also the Penneru—account for its agricultural importance.

For a long time the rivers’ benefits were restricted to the coastal districts of the Andhra region, which had the best irrigation facilities. Beginning in the mid-20th century, however, great efforts were made to tap the waters of the Godavari, Krishna, Penneru, and other rivers by constructing dams and reservoirs that benefit both coastal and drier upland regions. Canal irrigation in the Rayalaseema region of the plateau has given rise to agro-industrial complexes rivaling those of coastal Andhra Pradesh. The Nagarjuna Sagar multipurpose project, diverting the waters of the Krishna for irrigation, has substantially increased the production of rice and sugarcane. Rice flour, rice-bran oil, paints and varnishes, soaps and detergents, cardboard and other packaging materials, and cattle feed are all produced from local paddy rice. Other agricultural commodities grown statewide include other cereal grains, pulses (peas, beans, and lentils), peanuts (groundnuts), corn (maize), and cotton—all of which are processed locally as well—and a variety of fruits and vegetables.

Animal husbandry has increased significantly in Andhra Pradesh, especially since the start of the 21st century. Livestock raising contributes roughly half as much in overall value as crop production. Animals raised include cattle, water buffalo, sheep, goats, pigs, and poultry. Dairy and egg production have grown dramatically.

The woodlands of Andhra Pradesh annually yield high-quality timber, such as teak and eucalyptus. Non-timber forest products—including sal seeds (from which an edible oil is extracted), tendu leaves (for rolling cigarettes), gum karaya (a type of emulsifier), and bamboo—are also important.

With its long coastline and many rivers, the state has a significant and expanding fishing industry. Much of the yield is drawn from freshwater and marine aquaculture, but open-sea fisheries are significant as well. Prawns and shrimp are among the main products of the industry.

Andhra Pradesh was among the very few states in the country which went in for the Green Revolution in rice cultivation in the 1970s. Agricultural income in the state was ₹54.599 billion (US$770 million) at constant prices (2012–13).

Aquaculture

Aquaculture such as cultivating fish, crustaceans, molluscs, Shrimp production etc., are the major occupations of coastal areas. Andhra Pradesh is the largest producer of shrimp in the country, with 70% of the production from the state itself. The geographical location of the state allows marine fishing as well as inland fish production. Cyclones may do less damage to aquaculture than to crop production. Hence, farmers are getting attracted towards this industry. It grew from ₹3.46 billion (US$49 million) to ₹5.61 billion (US$79 million). The Waterbase Limited is an aquaculture unit located at Nellore, it encourages scientific shrimp farming. Most exported marine exports include Vannamei shrimp.


Horticulture

Andhra Pradesh has made significant contributions to India’s traditional Horticulture crops cultivation. Increased area and production under Horticultural crops has put Andhra Pradesh in a stronger position in terms of attracting investments from private sector.

Given that area and production of fruits and vegetables have been increasing steadily, Andhra Pradesh has the potential to increase its contribution towards the economy by way of exports There is a voluntary shift in the cropping pattern, as returns from Horticulture per unit of land are higher in comparison to Agriculture. The Horticulture is climate resilient, therefore assures higher income to farmers. Due to changing Socioeconomic profile and increasing middle class coupled with higher per capita income this sector has more potential as food habits are changing and people are becoming more health conscious.

The State has 17.48 Lakhs Ha. Under Horticulture crops with an annual production of 301.73 Lakhs metric tons. Horticulture sector contributes approximately 16.07% to the state GVA.

AREA and PRODUCTION: In Andhra Pradesh area under Horticulture crops is 17.48 lakhs Hectors with a production of 301.73 lakh MTs. Andhra Pradesh stands at 1st position in Chillies, Cocoa, Lime, Oil Palm, Papaya and Tomato, 2nd in Cashew, Mango and Sweet Orange in India. A.P. Ranks 1st in area and production of fruits and spices and 2nd in Micro Irrigation area coverage


Fisheries

Andhra Pradesh Fisheries contribute 10% of total fish and shrimp production of India. Accordingly, the government is focussed on developing this huge industry on a large scale. The convinient geographical location of this South Indian state allows marine fishing as well as inland fish production in Andhra Pradesh.The Value of marine products exports from India in 1998 was Rs. 4710 Crores among which the state alone contributed products of Rs. 2000 Crores. This data in itself explains the importance of fisheries in Andhra Pradesh.

Andhra Pradesh constantly tries to increase fish seed production and stocking. For this they are using modern equipments like including the use of satellite data for forecasting movement of Fish shoals. Fishery Rights have been implemented and the government is trying to inspire the laborers to follow scientific fishing techniques that would be promote sustainable development and would be beneficial to all concerned. Issue of separate licenses for fisherman in inland waters and marine fishing crafts are in process.

By 2020, Andhra Pradesh wishes to be a major exporter and provider of highly nutritious food. The central coastal districts of the state have been concentrating on advanced methods of fish production and the farmers are getting encouraged to convert agricultural lands into fresh water fishponds to obtain better yields and also to make full use of fresh water.

Apart from fishing, Andhra Pradesh government is also inspiring to develop economically in other ways. Accordingly, the fisheries are developing as sites for recreation amidst the scenic beauty. Activities like boat riding in lakes and reservoirs, establishment of Angling clubs, ornamental fish and aquariums and construction of marine parks are upcoming for additional income.


Livestock

In order to improve the productivity of the existing livestock, a massive programme of Breed Improvement through door step Artificial insemination is launched by Government of India under the scheme of NPCBB Restructuring of Breeding Operations.

Andhra Pradesh is one of the pioneer states which have taken up “Restructuring of Breeding Operations” by involving farmer’s organizations by establishing state level autonomous body. APLDA is formed in April 2000, to provide quality inputs and for channelizing inputs to the AI practitioners to take up doorstep AI on self-employment basis. It has taken up a gigantic task to expand AI facilities, to cover entire breed able population aiming at Productivity optimization. APLDA provides animal breeding services at farmer’s doorstep, on cost recovery basis, covering total breed able population of 105.83 lakhs cattle and buffaloes belonging to 30 lakh farmers spread over 28245 revenue villages in the state. APLDA is an autonomous organization with specialized objectives.

Genesis APLDA was registered under AP Societies Registrations Act, 1350 Fails with registration No: 7146 of 1999 dated: 13.10.1999. The Government have appointed the Chairman & Executive Committee (EC) members vide G.O Ms No: 85, dated: 02.08.1999. As per AP Reorganization Act 2014, APLDA has been included in Tenth Schedule and the Executive Committee & General Body resolved for division into two separate entities with the names APLDA which started functioning separately since 02.06.2014. APLDA is now extending its operations in thirteen (13) Districts of A.P. State.

Objectives To expand Artificial Insemination to cover entire breed able population at farmer’s doorstep aiming at productivity optimization through improved breeding and through a system of recycling of revenue, making itself sustainable.

  • To channelize all the inputs needed to provide Artificial Insemination facility.
  • To regulate and ensure quality control of inputs and services rendered by the field workers.
  • Capacity building of personnel for effective management.
  • Functions Production and procurement of quality inputs like Frozen Semen, Liquid Nitrogen, equipment and their timely supply.
  • Crossbreeding of cattle, up-gradation of buffaloes, maintenance and development of indigenous Germplasm in breeding tracts and assessing the breeding needs.
  • Maintenance of quality Artificial Insemination services.
  • Standardizing methodology of AI and designing of training programmes.
  • Generation of self employment to unemployed rural youth as Gopalamitras.
  • Training and positioning of the AI Technicians.
  • Educating the farmers on breeding activities and reproductive management.
  • Applying the latest technologies & presenting the benefits of advanced research programmes at the doorstep of farmers.

Minerals and Energy

This state, located towards the southern part of India, is pivot for the prosperity of the industrial sector in the region. The state is quite rich in mineral resources, which in turn helps in the economical growth of this south Indian state. With its vast and varied mineral resources, Andhra Pradesh ranks 2nd in the nation in regards to mineral wealth. This state is famous for its engagement in the mining activities of different industrial minerals.

To name a few of the most important minerals found in the state are barytes (97 %), calcite (75 %), garnet (23 %), feldspar (5 %), fuller’s earth (6 %), limestone (44 %) and vermiculite (27 %). Apart from these, the other minerals, which the state is rich in, are apatite, beach sands, bauxite, corundum, chromite, dolomite, granite, green quartz, kyanite, limekankar, limeshell, manganese, marble, mica, ochre, pyrophillite, quartz, shale, slate, steatite, tungsten and many more.

Andhra Pradesh occupies the 2nd rank in the deposit and production of mica in India. Stretching over an area of around 1, 000 km2., the mica belt of this state is said to be the 2nd largest mica belt of the country. This state on the south east coast of the Indian Republic, has got immense potential for under tapped as well as untapped minerals such as bauxite, dolomite, limestone, coal, oil, diamonds, natural gas, semi-precious stones, tungsten, beach sands, base metals, iron ore, gold, granite and clay. The Government of Andhra Pradesh invites and encourages offers to be taken on all of these potential minerals.

Among the state’s principal mineral resources are asbestos, mica, manganese, barite, and high-grade coal. Low-grade iron ore is found in the southern parts of the state. Andhra Pradesh produces a major share of the country’s barite. It is the only state in southern India that possesses significant coal reserves. In the early 21st century, large deposits of natural gas were discovered onshore and offshore in the basins of the Godavari and Krishna rivers. The diamond mines of Golconda were once renowned worldwide for producing the Koh-i-noor diamond and other famous stones; efforts have been made to revive production in the area. Quartz, limestone, and graphite also occur. The state has established a mining and metal-trading corporation to lead the exploitation of its mineral resources.

Most of Andhra Pradesh’s energy is produced by thermal generators in the public sector. Hydroelectric power stations—notably those on the Krishna River along the Telangana border at Srisailam and Nagarjuna Sagar—provide an important secondary source of energy. In addition, the government has established several wind farms. A number of private companies operate generators powered by natural gas; they also have worked to develop wind, biomass, and other non-conventional power sources.


Manufacturing

Andhra Pradesh since the mid-20th century has become one of the most highly industrialized states in India. Industry—including mining, utilities, and construction as well as manufacturing—contributes roughly the same value to the state income as does agriculture, although manufacturing itself accounts for only a small proportion of the overall income. Industries such as shipbuilding, aeronautics, and the manufacture of electrical equipment, machine tools, and drugs have been established in the Visakhapatnam area. Private enterprises, many of them located in and around the urban agglomeration of Vijayawada and Guntur in the east-central region, produce chemicals, textiles, cement, fertilizers, processed foods, petroleum derivatives, and cigarettes.

A number of important enterprises of moderate size, such as sugar factories, are scattered across the medium-size and smaller urban areas. There is a mammoth steel plant at Visakhapatnam, where raw materials and port facilities are easily accessible; an oil refinery also is located there, as is a large shipbuilding yard. The increase in power generated by hydroelectric and thermoelectric projects since the late 20th century has benefited industrialization and irrigation.


Services

The service sector is the largest component of Andhra Pradesh’s economy, accounting for more than half of its value. Banking and insurance, communications, and public administration are the three major components, with other services (including tourism-related activities) constituting the remainder of the value. Tourism has grown in importance, with visitors being drawn to the state’s Hindu and Buddhist cultural landmarks, natural areas in the mountains and elsewhere, and vibrant cities.

Transportation

There are several airports in the state, notably at Vijayawada, Tirupati, and Visakhapatnam. An extensive road and rail system connects Andhra Pradesh with most other parts of India. Bus transportation, a large share of which is privately operated, offers facilities for express travel between various cities. The river canals in coastal areas, especially the saltwater Kommamur (Buckingham) Canal running parallel to the coast from the Krishna River south to Chennai (Madras) in Tamil Nadu, are used for cargo transportation. Visakhapatnam is a major international seaport.


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