Growth Performance of Andhra Pradesh Compared with the Indian Average: An Empirical Analysis, 2014-15 to 2024-25

This study examines the real economic growth performance of Andhra Pradesh in comparison with India during 2014-15 to 2024-25. The analysis uses constant-price Gross State Domestic Product (GSDP) growth for Andhra Pradesh and constant-price Gross Domestic Product (GDP) growth for India, drawing primarily on the Government of Andhra Pradesh Socio-Economic Survey 2024-25 and official national accounts data. The findings indicate that Andhra Pradesh recorded an average real growth rate of approximately 7.22% during the study period, compared with 6.04% for India, giving the state an average growth advantage of about 1.19 percentage points. Andhra Pradesh grew faster than the national economy in six of the eleven years examined. Its highest growth rate was 12.16% in 2015-16, while its lowest growth rate was 1.52% in 2020-21. During the COVID-19 shock in 2020-21, Andhra Pradesh maintained positive growth, whereas India's GDP contracted by 5.8%. However, the state's growth weakened during 2018-19 and 2019-20 and remained below the national growth rate during much of the post-pandemic recovery. In 2024-25, Andhra Pradesh recorded a strong recovery, with real GSDP growth of 9.24% compared with India's 6.4%. Sectoral analysis shows that agriculture, industry and services have all contributed to the state's economic performance. The study concludes that sustaining Andhra Pradesh's growth advantage will require productivity enhancement, industrial diversification, productive infrastructure, agricultural diversification, stronger services and investment in human capital.