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Home > Information Kiosk >AP ACHIEVES RECORD GROWTH RATE IN 2007-08- New File


Andhra Pradesh has done it again. It has surpassed the national average economic growth and per capita growth once again.

The Chief Minister Dr. Y S Rajasekhara  Reddy  expressed satisfaction over the State achieving the growth rate  of 10.37 percent  and clocking   spectacular  GSDP   of  Rs.229461 crores  as against the all India  GDP of   just  8.73  at  Rs.3114450 crore. The chief minister however informed the A.P.Legislative Assembly that the economic growth rate of Andhra Pradesh for 2007-08  was poised to reach the 11.5 to 12 per cent mark when the final figures are available  by March end.

As per the statistics available the  state had  achieved a per capita  income of Rs.33970  at   14.83 percent  in 2007-08  as against the  national average  of Rs.33131  at  11.77 percent. Contrary to political criticism the per capita expenditure on the social sector in AP was Rs 3,707 against a nominal Rs. 1,905 in UP.

The economic growth in the country had declined due to shortage of essential commodities, down swing in the trade, business, hotel, transport and communications and the comparative fall ion agricultural produce. The global decline shortage of power, spurt in petroleum prices, possibility of burden when the new pay revision commission recommendations are implemented etc had affected the overall economic growth rate, says Chairman of the Economic Advisory Committee to the Government, Dr C Rangarajan.

Thanks to financial discipline, huge capital expenditure in asset making and employment generation programs, good monsoons and  a sound agricultural production that Andhra Pradesh had been successful in reporting a stellar performance levels.

“We have been successful in creating a buoyancy in the  agricultural and industrial  economy  of the state through  permanent initiatives  which have  brought  in  good results  in revenue collection and also in plugging loopholes in our collection system “says the chief minister Dr.Y.S.Rajasekahra Reddy.

Andhra Pradesh has achieved record GSDP in agriculture at 12.17 percent in spite of devastating floods striking the state in the last three years and destroying standing crops. The agriculture sector comprising of Agriculture, Livestock, Forestry & Logging and Fishing had achieved Rs.26 539 crore. The agriculture sector recorded 21.37 per cent growth due to excess rainfall of 20 per cent which is evenly distributed all over the state.  

Industries Sector comprises Mining & Quarrying, Manufacturing, Electricity, Gas & Water Supply and construction had achieved an Rs.38,872 crores as against corresponding previous years of Rs.36,078 crores and registered a growth rate of 7.74 per cent. Construction Sector has registered a growth rate of 12.20 per cent due to massive programs taken up by the government on “Jala Yagnam” and Indiramma Programmes.

Services Sector comprising of Trade, Hotels & Restaurants, Transport and Communications, Financing, Insurance, Real Estate and Business Services and Community, Social and Personal Services had achieved a GSDP of Rs.80, 816 crores in 2007-08 as against corresponding previous year of
Rs.73,400 crores by registering a growth rate of 10.10 per cent.

Trade Sector which reflects the performance of both Agriculture and Industries has registered a growth of 8.57 per cent. Banking and Insurance, Real Estate and Ownership of Dwellings registered a growth of 10.54 per cent and 11.27 per cent respectively. The performance levels have excited revenue and finance department  who  claim that the coming year would be still better  in view of the majority of the  projects  yielding  almost  60 per cent  result .

 In comparison the neglect of agriculture and industry by the TDP had led to a slump in GSDP to 3.26 percent at Rs.1,50,281 crore in 2002-03. The per capita income had also touched the lowest at 5.04 percent at Rs 19568 crore in 2002-03.  “We are  very clear about our road map of development  and   our success is due to clarity in our financial procedures and  absence of any diversion of funds for non-productive and publicity programs” says the chief minister .