The first quarter numbers of Andhra Pradesh economic indicators shows that the gross state domestic product (GSDP) was up by 7.39 per cent aided by strong growth in the agriculture sector.

However, the performance of the industrial and services sector was lower than the all India average.

According to State Finance Minister Yanamala Ramakrishnudu, the agriculture sector performance was robust contributing to 17.43 per cent as against all India agriculture contribution of 3.80 per cent to GDP number. The industrial sector contribution in the new State was however lower at 3.96 per cent versus all India’s 4.24 per cent and the services sector too lagged behind with contribution of 6.46 to the State GSDP as against 6.80 per cent in the country.

Reviewing the economic performance of the State and analysing growth rates across different sectors, the Finance Minister said that the agriculture sector in Andhra Pradesh has registered significantly higher growth than the all-India average in the same sector. However, the State is lagging behind in industry and services sectors.

The Finance Minister expressed the need to develop these two sectors over the next five years.

During the meeting, the Finance Minister instructed the planning department to identify new areas for growth  within sectors. The background analysis would be useful before the preparation of the budget for 2015-16.

The Government is set to take up Ananthapur and East Godavari districts as pilot projects for mandal wise study of GSDP with reference to various growth engines across different sectors.

Distilleries

The State is considering giving permission to set up four distilleries. The new distilleries are being considered as Andhra Pradesh is having to source from other States including Telangana and having to pay up higher taxes. The setting up of new distilleries is seen to add to the State revenues.

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