Andhra Pradesh - Economy
Hyderabad is known as 'Silicon Valley' of Asia. But when the new state of Telangana was carved out of erstwhile Andhra Pradesh, Hyderabad went to Telangana,
The per capita income of its citizens has been growing at a rate higher than the national average and its poverty rate has declined faster than the rest of India. However, persistent droughts, farmers' distress, and lackluster performance in health and education sectors pose considerable challenge to the state. The state has well-developed social, physical and industrial infrastructure and virtual connectivity. It also has good power, airport, IT and port infrastructure. At current prices, Andhra Pradesh’s gross state domestic product (GSDP) was estimated at US$ 108.5 billion over 2016-17.
Between 2011-12 and 2015-16, the state’s GSDP grew at an average annual rate of 6.8% (at constant prices). Over this period, per capita GSDP increased from Rs 76,962 to Rs 97,855, an average increase of 6.2%. In 2015-16, the state’s GDP grew at 11%, at constant prices. The agriculture sector grew at 8.7% (at constant prices) as compared to 2014-15, while the manufacturing sector grew at 11%. The services sector grew at 11.4%, compared to 11.5% in 2014-15. The primary sector (agriculture and mining) contributed to 30% of GSDP in 2015-16, while the manufacturing (including electricity and construction) and services sectors contributed to 23% and 46% of the GSDP respectively.
The state has attracted Foreign Direct Investment (FDI) equity inflows worth US$ 14.331 billion during the period April 2000 to September 2017, according to data released by Department of Industrial Policy and Promotion (DIPP). The Government of Andhra Pradesh has proposed a budget of US$ 23.4 billion for FY 2017-18. Special emphasis has been laid in the expenditure budget on education (US$ 3.04 billion), rural development (US$ 2.92 billion), irrigation (US$ 1.90 billion), agriculture and allied industries (US$ 1.36 billion) and energy sector (US$ 637.17 million).
There are several major industries are in operation in Andhra Pradesh, mainly in Visakhapatnam cluster. The main industries are machine tools, synthetic drugs, pharmaceuticals, heavy electrical machinery, fertilizers, electronic equipment, aeronautical parts, cement and cement products, chemicals, asbestos, glass and watches. Visakhapatnam ship building industry is very famous.
Agriculture is the main source of occupation of the state. Rice is the major crop and staple food of the state and contributing about 80% to 85% of the total food-grain production of the state. The state is surplus in rice production. Other important crops are Jowar, Bajra, Maize, Ragi, Small Millets, Pulses, Castor, Tobacco, Cotton Sugarcane, Groundnut and Banana. The state accounts for about 55% of the country's entire production of castor and 94% of Virginia tobacco. Important forests products are teak, eucalyptus, cashew, casuarina, bamboo, soft wood, etc.
Andhra Pradesh is enriched with various minerals. It stands second in deposits of minerals of strategic importance and sixth with regard to their valued produced. This state has the largest deposit of quality chrysolite asbestos in the country. It accounts 93% of the India's total production of barites. This state ranks sixth in the production of manganese ore, second in mica and limestone production. The Singareni Coal Mines supply coal to the entire south India located in Andhra Pradesh. Other important minerals founds in the state are copper ore, bauxite, iron ore, lead-zinc, tungsten, diamond, graphite, kaolin, Phosphate minerals, kyanite and sillimanite, calcite, zircon, corundum, etc.
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