Economy of Andhra Pradesh - AbsoluteAstronomy.com

The economy of Andhra Pradesh
Andhra Pradesh
Andhra Pradesh , is one of the 28 states of India, situated on the southeastern coast of India. It is India's fourth largest state by area and fifth largest by population. Its capital and largest city by population is Hyderabad.The total GDP of Andhra Pradesh is $100 billion and is ranked third...

is mainly driven by agriculture. Two important rivers of India, the Godavari

Godavari River

The Godavari is a river that runs from western to southern India and is considered to be one of the big river basins in India. With a length of 1465 km, it is the second longest river in India , that runs within the country and also the longest river in South India...

and Krishna

Krishna River

The Krishna River , is one of the longest rivers in central-southern India, about . It is also referred to as Krishnaveni in its original nomenclature...

, flow through the state, providing irrigation. Rice

Rice

Rice is the seed of the monocot plants Oryza sativa or Oryza glaberrima . As a cereal grain, it is the most important staple food for a large part of the world's human population, especially in East Asia, Southeast Asia, South Asia, the Middle East, and the West Indies...

, sugarcane

Sugarcane

Sugarcane refers to any of six to 37 species of tall perennial grasses of the genus Saccharum . Native to the warm temperate to tropical regions of South Asia, they have stout, jointed, fibrous stalks that are rich in sugar, and measure two to six metres tall...

, cotton

Cotton

Cotton is a soft, fluffy staple fiber that grows in a boll, or protective capsule, around the seeds of cotton plants of the genus Gossypium. The fiber is almost pure cellulose. The botanical purpose of cotton fiber is to aid in seed dispersal....

, mirchi

Chili pepper

Chili pepper is the fruit of plants from the genus Capsicum, members of the nightshade family, Solanaceae. The term in British English and in Australia, New Zealand, India, Malaysia and other Asian countries is just chilli without pepper.Chili peppers originated in the Americas...

(chilli pepper), mango

Mango

The mango is a fleshy stone fruit belonging to the genus Mangifera, consisting of numerous tropical fruiting trees in the flowering plant family Anacardiaceae. The mango is native to India from where it spread all over the world. It is also the most cultivated fruit of the tropical world. While...

and tobacco

Tobacco

Tobacco is an agricultural product processed from the leaves of plants in the genus Nicotiana. It can be consumed, used as a pesticide and, in the form of nicotine tartrate, used in some medicines...

are the local crops. Recently, crops used for vegetable oil

Vegetable fats and oils

Vegetable fats and oils are lipid materials derived from plants. Physically, oils are liquid at room temperature, and fats are solid. Chemically, both fats and oils are composed of triglycerides, as contrasted with waxes which lack glycerin in their structure...

production such as sunflower

Sunflower

Sunflower is an annual plant native to the Americas. It possesses a large inflorescence . The sunflower got its name from its huge, fiery blooms, whose shape and image is often used to depict the sun. The sunflower has a rough, hairy stem, broad, coarsely toothed, rough leaves and circular heads...

and peanut

Peanut

The peanut, or groundnut , is a species in the legume or "bean" family , so it is not a nut. The peanut was probably first cultivated in the valleys of Peru. It is an annual herbaceous plant growing tall...

s have gained favour. There are many multi-state irrigation projects in development, including Godavari River Basin Irrigation Projects

Godavari River Basin Irrigation Projects

The Godavari River has its catchment area in five states of India: Maharashtra, Chattisgarh, Madhya Pradesh, Andhra Pradesh, Karnataka and Orissa.* Dowleswaram Barrage* Jalaput* Balimela Reservoir* Upper Indravati* Nizam Sagar* Sriram Sagar...

and Nagarjuna Sagar Dam

Nagarjuna Sagar Dam

Nagarjuna Sagar Dam is the world's largest masonry dam built across Krishna River in Nagarjuna Sagar, Nalgonda District of Andhra Pradesh, India, between 1955 and 1967. The dam contains the Nagarjuna Sagar reservoir with a capacity of up to 11,472 million cubic metres. The dam is . tall and...

, the world's highest masonry dam.
The state has also started to focus on the fields of information technology

Information technology

Information technology is the acquisition, processing, storage and dissemination of vocal, pictorial, textual and numerical information by a microelectronics-based combination of computing and telecommunications...

and biotechnology

Biotechnology

Biotechnology is a field of applied biology that involves the use of living organisms and bioprocesses in engineering, technology, medicine and other fields requiring bioproducts. Biotechnology also utilizes these products for manufacturing purpose...

. In 2004–2005, Andhra Pradesh was at the Seventh position behind Maharastra, New Delhi, Karnataka, Tamil Nadu, West Bengal, and Gujarat in the list of top IT exporting states of India. The IT exports from the State were 1,800 million in 2004. The IT sector is expanding at a rate of 52.3% every year. The IT exports reached 19,000 million in 2006–2007 and ranked fourth in India. The service sector of the state already accounts for 43% of the GSDP and employs 20% of the work force.

Andhra Pradesh, India is a mineral rich state, ranking second in India in terms of mineral wealth. The state has about one third of India's limestone

Limestone

Limestone is a sedimentary rock composed largely of the minerals calcite and aragonite, which are different crystal forms of calcium carbonate . Many limestones are composed from skeletal fragments of marine organisms such as coral or foraminifera....

reserves, estimated at about 30 billion tonnes.

The state ranks first nationwide in hydro electricity generation

States of India by installed power capacity

This is a list of States and Union Territories of India by installed capacity of power utilities with generation mode break-up as of 31-03-11 by the Ministry of Power with figures in millions of watts ....

with national market share of over 11%. The offshore Krishna-Godavari basin gas reserves of 60 Trillion cubic feet provide a third of the nation's gas needs.

Andhra Pradesh's gross state domestic product for 2009 was estimated at $62 billion in current prices. This is a chart of trend of gross state domestic product of Andhra Pradesh at market prices estimated by Ministry of Statistics and Programme Implementation with figures in millions of Indian Rupees. Accordingly, the state ranks fourth in terms of overall gross state domestic product and fourth in per capita gross state domestic product among the major states of India.

Year	State GDP (Rs. MM)	In Constant Dollars ($ Billion)	Growth Rates in Constant Dollars
1980	81,910	$10.2	-
1985	152,660	$15.2	50%
1990	333,360	$25.64	67%
1995	798,540	$124.2	-4%
2000	1,401,190	$33.2	37.5%
2007	2,294,610	$48.2	45.5%(7 yr)

Special economic zones

Special Economic Zones have been declared. The numbers are 68 in Telangana, 28 in Coastal Andhra and 7 in Rayalseema.

State priority areas

Food processing

Food processing is the set of methods and techniques used to transform raw ingredients into food or to transform food into other forms for consumption by humans or animals either in the home or by the food processing industry...

, software export

Export

The term export is derived from the conceptual meaning as to ship the goods and services out of the port of a country. The seller of such goods and services is referred to as an "exporter" who is based in the country of export whereas the overseas based buyer is referred to as an "importer"...

s, financial services

Financial services

Financial services refer to services provided by the finance industry. The finance industry encompasses a broad range of organizations that deal with the management of money. Among these organizations are credit unions, banks, credit card companies, insurance companies, consumer finance companies,...

, electronics

Electronics

Electronics is the branch of science, engineering and technology that deals with electrical circuits involving active electrical components such as vacuum tubes, transistors, diodes and integrated circuits, and associated passive interconnection technologies...

, power

Electrical power industry

The electric power industry provides the production and delivery of electric energy, often known as power, or electricity, in sufficient quantities to areas that need electricity through a grid connection. The grid distributes electrical energy to customers...

, textiles and tourism

Tourism

Tourism is travel for recreational, leisure or business purposes. The World Tourism Organization defines tourists as people "traveling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes".Tourism has become a...

are the priority areas of Andhra Pradesh.

Investment strengths

Reform-oriented state,
Improved governance
Governance
Governance is the act of governing. It relates to decisions that define expectations, grant power, or verify performance. It consists of either a separate process or part of management or leadership processes...

and administration
Public administration
Public Administration houses the implementation of government policy and an academic discipline that studies this implementation and that prepares civil servants for this work. As a "field of inquiry with a diverse scope" its "fundamental goal.....

;
Fourth largest market in the nation;
Relatively high purchasing power
Purchasing power
Purchasing power is the number of goods/services that can be purchased with a unit of currency. For example, if you had taken one dollar to a store in the 1950s, you would have been able to buy a greater number of items than you would today, indicating that you would have had a greater purchasing...

Infrastructure

The State is well connected by road, rail, air and sea. Visakhapatnam

Visakhapatnam

Visakhapatnam is a major sea port on the south east coast of India. With a population of approximately 1.7 million, it is the second largest city in the state of Andhra Pradesh and the third largest city on the east coast of India after Kolkata and Chennai. According to the history, the city was...

is a major port in the State. Hyderabad , Tirupati, and Visakhapatnam are air-linked. National and international flights link the state with important world locations.

Hydel and thermal power projects in the state meets the power requirements of the State. Number of new power projects are coming up in the State which is expected to generate additional power capacity in the State.

Power

The State was plagued with transmission and distribution losses, leading to a power crunch. It initiated reforms in the power sector. Yet, some SSIs still face the problems of erratic supply of power and report that power tariff is high in the State.The installed power capacity of the state is 13920.58 MW.

Roads

AP has been one of the first States to encourage private sector

Private sector

In economics, the private sector is that part of the economy, sometimes referred to as the citizen sector, which is run by private individuals or groups, usually as a means of enterprise for profit, and is not controlled by the state...

participation in infrastructure development. The State has a total length of over 2,05,O00 km of road network, including national and state highways, district and rural roads. Development of high density corridors on major routes is being undertaken with private participation.

Airways

Andhra Pradesh has a World class airport in Hyderabad, Rajiv Gandhi International Airport. Rajiv Gandhi International Airport is the second public-private partnership

Public-private partnership

Public–private partnership describes a government service or private business venture which is funded and operated through a partnership of government and one or more private sector companies...

venture in the Indian airports. Hyderabad international airport has been named amongst the world's top five in the annual Airport Service Quality (ASQ) passenger survey along with the ones at Seoul

Seoul

Seoul , officially the Seoul Special City, is the capital and largest metropolis of South Korea. A megacity with a population of over 10 million, it is the largest city proper in the OECD developed world...

, Singapore

Singapore

Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...

, Hong Kong

Hong Kong

Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...

and Beijing

Beijing

Beijing , also known as Peking , is the capital of the People's Republic of China and one of the most populous cities in the world, with a population of 19,612,368 as of 2010. The city is the country's political, cultural, and educational center, and home to the headquarters for most of China's...

. Apart from Hyderabad, there are airports at Visakhapatnam, Tirupathi, Warangal, Vijayawada

Vijayawada

Vijayawada is the third largest city in Andhra Pradesh, India, located on the banks of the Krishna River and bounded by the Indrakiladri Hills on the West and the Budameru River on the North. The city is located in the Krishna District, about from the state capital Hyderabad.Vijayawada literally...

and Puttaparthi

Puttaparthi

Puttaparthi is a town situated in the Anantapur district of Andhra Pradesh, India. It was also the residence of the notable spiritual teacher Sathya Sai Baba....

. Hyderabad has an air-cargo complex with customs clearance. Direct flights to Singapore, Sharjah

Sharjah (city)

Sharjah is the third largest and most populous city in the United Arab Emirates. It is located along the southern coast of the Persian Gulf on the Arabian Peninsula.Sharjah is the seat of government of the emirate of Sharjah...

, Kuwait

Kuwait

The State of Kuwait is a sovereign Arab state situated in the north-east of the Arabian Peninsula in Western Asia. It is bordered by Saudi Arabia to the south at Khafji, and Iraq to the north at Basra. It lies on the north-western shore of the Persian Gulf. The name Kuwait is derived from the...

, Muscat

Muscat, Oman

Muscat is the capital of Oman. It is also the seat of government and largest city in the Governorate of Muscat. As of 2008, the population of the Muscat metropolitan area was 1,090,797. The metropolitan area spans approximately and includes six provinces called wilayats...

, Malaysia, Dubai

Dubai

Dubai is a city and emirate in the United Arab Emirates . The emirate is located south of the Persian Gulf on the Arabian Peninsula and has the largest population with the second-largest land territory by area of all the emirates, after Abu Dhabi...

and New York

New York

New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...

operate from Hyderabad. Andhra Pradesh share in All India Air traffic is around 5.29 in domestic traffic and 3.3 in International passenger traffic. The average per month domestic passenger traffic is 1.19 lakhs and that of International passengers is 36,000. Average cargo handled per month is around 2052 Tonnes.

Sea ports

Andhra Pradesh has the biggest seaport at Visakhapatnam, with feeder services to Europe

Europe

Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...

, Russia

Russia

Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...

, USA and the Asia Pacific. Berthing of vessels is available up to 50000 DWT. The cargo handling at Visakhapatnam port during July 2002 – June 2003 was 455 lakh tonnes (14.6% of All India), making it the busiest port in the entire country, ahead of Kandla

Kandla

Kandla is a seaport in Kutch District of Gujarat state in western India. Located on the Gulf of Kutch, it is one of major ports on west coast. Kandla was constructed in the 1950s as the chief seaport serving western India, after the partition of India from Pakistan left the port of Karachi in...

, Chennai

Chennai

Chennai , formerly known as Madras or Madarasapatinam , is the capital city of the Indian state of Tamil Nadu, located on the Coromandel Coast off the Bay of Bengal. Chennai is the fourth most populous metropolitan area and the sixth most populous city in India...

, Haldia

Haldia

Haldia has a typical moderate climate with winter temperatures ranging from a low of around 7 degrees Celsius to a high of 22 degrees Celsius. Winters are chilly and is when the residents hold the Haldia Utsav festival. Summers can be very hot and humid. Usual summer temperatures in May, the...

and Mumbai

Mumbai

Mumbai , formerly known as Bombay in English, is the capital of the Indian state of Maharashtra. It is the most populous city in India, and the fourth most populous city in the world, with a total metropolitan area population of approximately 20.5 million...

. Gangavaram Port also located in Visakhapatnam, is India's deepest port. Inaugurated in July 2009, it has a depth of 21m.

Communications

The latest available statistics (as in 2001) show that there were 3003 Telephone exchange

Telephone exchange

In the field of telecommunications, a telephone exchange or telephone switch is a system of electronic components that connects telephone calls...

s, 3140948 telephone connections, 118 telegraph offices (excluding extension counters, telecom centers, and combined offices) and 78218 public telephone

Payphone

A payphone or pay phone is a public telephone, often located in a phone booth or a privacy hood, with pre-payment by inserting money , a credit or debit card, or a telephone card....

s. As at December 2003, it is estimated that there are 15.5 lakh cell phone subscribers in the State. The State’s share in All India cell phone subscribers is 7%.

Industrial estates, and industrial parks

There are 272 Industrial estates and industrial development areas in the State, covering an area of 14700 hectares. The State Government is in the process of developing Industrial Parks at different places, for specific groups of industries. The existing parks are Software Park at Hyderabad, Hitec city for software units, Apparel Park at Gundlapochampalli

Gundlapochampalli

Gundlapochampalle or Gundla Pochampalli is a village in Medchal mandal of Rangareddi district, Andhra Pradesh, India.-Demographics:According to Indian census, 2001, the demographic details of Gundlapochampalle village is as follows:...

, Export Promotion Park at Pashamylaram, Visakhapatnam Export Processing Zone, Bio-technology park at Turkapally

Turkapally

Turkapally is a Mandal in Nalgonda district of Andhra Pradesh, India.The villages in Turka Pally mandal includes: Chinna Laxmapur, Dattaipally, Dharmaram, Gandamalla, Gollagudem, Gopalpur, Ibhrahimpur, Konapur, Kondapur, Thrukapally, Madhapur, Malkapur, Motiram Thanda, Mulka Pally, Nagai Pally,...

.

Many other parks are proposed, such as leather

Leather

Leather is a durable and flexible material created via the tanning of putrescible animal rawhide and skin, primarily cattlehide. It can be produced through different manufacturing processes, ranging from cottage industry to heavy industry.-Forms:...

parks at various places in the districts; food parks - one each in the 3 regions of Telangana (processing of poultry

Poultry

Poultry are domesticated birds kept by humans for the purpose of producing eggs, meat, and/or feathers. These most typically are members of the superorder Galloanserae , especially the order Galliformes and the family Anatidae , commonly known as "waterfowl"...

products/processing of coarse grain & millets/spices);Coastal Andhra (value added rice products, dairy product

Dairy product

Dairy products are generally defined as foods produced from cow's or domestic buffalo's milk. They are usually high-energy-yielding food products. A production plant for such processing is called a dairy or a dairy factory. Raw milk for processing comes mainly from cows, and, to a lesser extent,...

s, horticultural products, marine products, labour oriented, export oriented industry); and in Rayalseema region (processing of vegetables - onion

Onion

The onion , also known as the bulb onion, common onion and garden onion, is the most widely cultivated species of the genus Allium. The genus Allium also contains a number of other species variously referred to as onions and cultivated for food, such as the Japanese bunching onion The onion...

, tomato

Tomato

The word "tomato" may refer to the plant or the edible, typically red, fruit which it bears. Originating in South America, the tomato was spread around the world following the Spanish colonization of the Americas, and its many varieties are now widely grown, often in greenhouses in cooler...

es, fruit

Fruit

In broad terms, a fruit is a structure of a plant that contains its seeds.The term has different meanings dependent on context. In non-technical usage, such as food preparation, fruit normally means the fleshy seed-associated structures of certain plants that are sweet and edible in the raw state,...

s, spices - coriander

Coriander

Coriander is an annual herb in the family Apiaceae. Coriander is native to southern Europe and North Africa to southwestern Asia. It is a soft, hairless plant growing to tall. The leaves are variable in shape, broadly lobed at the base of the plant, and slender and feathery higher on the...

, edible oils, labour oriented, export

Export

oriented industry. Agri Export Zones for the following produce are proposed at the places mentioned against them:

Mango
Mango
The mango is a fleshy stone fruit belonging to the genus Mangifera, consisting of numerous tropical fruiting trees in the flowering plant family Anacardiaceae. The mango is native to India from where it spread all over the world. It is also the most cultivated fruit of the tropical world. While...

es - Krishna district
Krishna district
Krishna District is a district of India's Andhra Pradesh state. It is named after the Krishna River, the third longest river that flows within India, flows through the district and joins Bay of Bengal here in this district. It has a population of 4,529,009 of which 32.08% is urban as of...

,
Gherkin
Gherkin
The gherkin is a fruit similar in form and nutritional value to a cucumber. Gherkins and cucumbers belong to the same species , but are from different cultivar groups....

s – Mahaboobnagar, Rangareddy, Medak
Medak
Medak , is a municipality in Medak District in the state of Andhra Pradesh, India. It is 100 km to the north of Hyderabad.-Geography:Medak is located at . It has an average elevation of 442 metres .-Demographics:...

, Karimnagar
Karimnagar
As of 2011 India census Estimation, Karimnagar city had a population of 2,99,660. Males constitute 51% of the population and females 49% has an average literacy rate of 86.75%, higher than the national average of 74.04%: male literacy is 92.61%, and female literacy is 80.79%. In Karimnagar, 12% of...

, Warangal
Warangal
Warangal is a city and a municipal corporation in Warangal district in the Indian state of Andhra Pradesh. Warangal is located northeast of the state capital of Hyderabad and is the administrative headquarters of Warangal District. This district is a combination of three cities: Warangal,...

, Anantapur, Nalgonda
Nalgonda
Nalgonda is a town and a municipality in Nalgonda district in the Indian state of Andhra Pradesh. Its name is derived from two Telugu words Nalla and Konda . Nalgonda in the past is referred to as Nilagiri. During the period of Bahamani kingdom, it had been renamed as Nallagonda...

.
Mangoes and grape
Grape
A grape is a non-climacteric fruit, specifically a berry, that grows on the perennial and deciduous woody vines of the genus Vitis. Grapes can be eaten raw or they can be used for making jam, juice, jelly, vinegar, wine, grape seed extracts, raisins, molasses and grape seed oil. Grapes are also...

s Hyderabad, Rangareddy, Medak, Mahaboobnagar,
Mango pulp and fresh vegetables – Chittoor
Chittoor
Chittoor also known as Chittur, is a City and municipal corporation located in the Chittoor District of Andhra Pradesh, India. It is conveniently located on major highways linking the cities of Bangalore and Chennai....

Other parks coming up are Gems and Jewellery park, Visakhapatnam Exim park.

Exports

Tentative estimates reveal that the total exports from AP during the year 2003-04 were to the tune of Rs.15306 crores. The share of software was 30%, and that of food products was 20%. The value of exports during 2002-03 was Rs.13614 crores and that during 2001-02 was Rs.12400 crores. IT exports alone from Andhra Pradesh for 2007-08 is over Rs.25,000-crore mark, up from Rs.18,500 crore recorded last fiscal, according to Hyderabad Software Exporters Association (HYSEA).

Agriculture

Agriculture is the main occupation and 60 percent of population is engaged in agriculture and related activities. Rice

Rice

is the major food crop and staple food

Staple food

A staple food is one that is eaten regularly and in such quantities that it constitutes a dominant portion of a diet, and that supplies a high proportion of energy and nutrient needs. Most people live on a diet based on one or more staples...

of the state. Other important crops are Jowar, Bajra

Pearl millet

Pearl millet is the most widely grown type of millet. Grown in Africa and the Indian subcontinent since prehistoric times, it is generally accepted that pearl millet originated in Africa and was subsequently introduced into India. The center of diversity, and suggested area of domestication, for...

, Maize

Maize

Maize known in many English-speaking countries as corn or mielie/mealie, is a grain domesticated by indigenous peoples in Mesoamerica in prehistoric times. The leafy stalk produces ears which contain seeds called kernels. Though technically a grain, maize kernels are used in cooking as a vegetable...

, ragi

Finger millet

Eleusine coracana, commonly Finger millet , also known as African millet or Ragi is an annual plant widely grown as a cereal in the arid areas of Africa and Asia. E...

, small millet

Millet

The millets are a group of small-seeded species of cereal crops or grains, widely grown around the world for food and fodder. They do not form a taxonomic group, but rather a functional or agronomic one. Their essential similarities are that they are small-seeded grasses grown in difficult...

s, pulses, tobacco

Tobacco

Tobacco is an agricultural product processed from the leaves of plants in the genus Nicotiana. It can be consumed, used as a pesticide and, in the form of nicotine tartrate, used in some medicines...

, cotton

Cotton

and sugar cane. The state has 23 percent area covered with forest.Agriculture has been the chief source of income for the state's economy. Four important rivers of India, the Godavari, Krishna

Krishna River

The Krishna River , is one of the longest rivers in central-southern India, about . It is also referred to as Krishnaveni in its original nomenclature...

, Penna

Penna

Penna can refer to:* Penner River, a river of southern India* Penna * Penna, an abbreviation for Pennsylvania* Pen...

, and Thungabhadra flow through the state, providing irrigation

Irrigation

Irrigation may be defined as the science of artificial application of water to the land or soil. It is used to assist in the growing of agricultural crops, maintenance of landscapes, and revegetation of disturbed soils in dry areas and during periods of inadequate rainfall...

. Rice, sugarcane, cotton, Chili pepper

Chili pepper

, mango, and tobacco are the local crops. Recently, crops used for vegetable oil production such as sunflower

Sunflower

and peanut

Peanut

s have gained favour. There are many multi-state irrigation projects in development, including Godavari River Basin Irrigation Projects

Godavari River Basin Irrigation Projects

and Nagarjuna Sagar Dam

Nagarjuna Sagar Dam

, the world's highest masonry dam.

Agriculture plays a pivotal role in the economy of Andhra Pradesh and the better performance of this sector is vital for inclusive growth. Although its contribution to gross state domestic product (GSDP) is around one-fourth, agriculture provides employment

Employment

Employment is a contract between two parties, one being the employer and the other being the employee. An employee may be defined as:- Employee :...

to nearly 60 per cent of the work force. Andhra Pradesh was among the very few states in the country which went in for the Green Revolution

Green Revolution

Green Revolution refers to a series of research, development, and technology transfer initiatives, occurring between the 1940s and the late 1970s, that increased agriculture production around the world, beginning most markedly in the late 1960s....

in rice cultivation in the 1970s. The share of agriculture in GSDP and employment are higher in A.P. as compared to
all-India. The per capita value of GSDP from agriculture is relatively higher in the state when compared to all- India. Average per capita agricultural income in the state was Rs. 3618 while it was Rs. 3360 in all-India at constant (1993–94) prices in the triennium 2002-05. There have been significant changes in the structure and performance of the agrarian economy in the state. In recent years, the state has also been facing a crisis in agriculture with a high incidence of suicide

Suicide

Suicide is the act of intentionally causing one's own death. Suicide is often committed out of despair or attributed to some underlying mental disorder, such as depression, bipolar disorder, schizophrenia, alcoholism, or drug abuse...

s by farmers.

Land reforms

Land reform

[Image:Jakarta farmers protest23.jpg|300px|thumb|right|Farmers protesting for Land Reform in Indonesia]Land reform involves the changing of laws, regulations or customs regarding land ownership. Land reform may consist of a government-initiated or government-backed property redistribution,...

s, in spite of all the limitations in implementation, did play an important role in changing the agrarian structure in Andhra Pradesh. The early land reform measures in the state were a combination of two administrative histories, of the Andhra region and the Telangana

Telangana

Telangana is a region in the present state of Andhra Pradesh, India and formerly was part of Hyderabad state which was ruled by Nizam. It is bordered with the states of Maharashtra on the north and north-west, Karnataka on the west, Chattisgarh on the north-east and Orissa to the east...

region which had formerly been under the Nizam

Nizam

Nizam-ul-Mulk of Hyderabad popularly known as Nizams of Hyderabad was a former monarchy of the Hyderabad State, now in the states of Andhra Pradesh , Karnataka , and Maharashtra in India...

. Following the pattern at the all-India level, the land reforms in Andhra Pradesh had three components: abolition of intermediaries, tenancy reforms, ceiling legislation and the other government initiatives.In 1977, the government of Andhra Pradesh enacted the Assigned Land Prohibition Act which ruled that land that had been ‘assigned’ by the government to the landless and tribals could not be resold and used for purposes other than agriculture3 . To improve women’s access to land and landed property Andhra Pradesh along with Karnataka

Karnataka

Karnataka , the land of the Kannadigas, is a state in South West India. It was created on 1 November 1956, with the passing of the States Reorganisation Act and this day is annually celebrated as Karnataka Rajyotsava...

and Tamil Nadu

Tamil Nadu

Tamil Nadu is one of the 28 states of India. Its capital and largest city is Chennai. Tamil Nadu lies in the southernmost part of the Indian Peninsula and is bordered by the union territory of Pondicherry, and the states of Kerala, Karnataka, and Andhra Pradesh...

amended the Hindu Succession Act, 1956, to legally protect the right of women to property including land.

With respect to tenancy, the Hyderabad Tenancy and Agricultural Lands Act was enacted in 1950 which gave protection to nearly six lakh tenants who held over 7500000 acres (30,351.5 km²) of land, constituting 33 per cent of the total cultivated area. This was considered one of the progressive acts of legislation

Legislation

Legislation is law which has been promulgated by a legislature or other governing body, or the process of making it...

in the state. The AP (Andhra Area) Tenancy Act 1956 was passed to ensure that a tenant was not evicted from his/her holding except by going to court. This legislation has given a mixed result as it often led to concealed tenancy (Reddy, 2006). Legislation on ceiling

Ceiling

A ceiling is an overhead interior surface that covers the upper limit of a room. It is generally not a structural element, but a finished surface concealing the underside of the floor or roof structure above....

s on agricultural holdings was enacted in two phases, 1955–72 and 1972 to the present.

The Andhra Pradesh Land Reforms (Ceiling on Agriculture Holdings) Acts were passed in 1961 and 1973. As in most states, the first round of legislation in 1961 was a miserable failure but the second one in 1973 had some impact. Against an estimated surplus

Economic surplus

In mainstream economics, economic surplus refers to two related quantities. Consumer surplus or consumers' surplus is the monetary gain obtained by consumers because they are able to purchase a product for a price that is less than the highest price that they would be willing to pay...

land of 2000000 acres (8,093.7 km²), only 790000 acres (3,197 km²) were declared surplus, of which 647000 acres (2,618.3 km²) were taken possession by the government and 582000 acres (2,355.3 km²) were distributed among 4.79 lakh beneficiaries till August 2004 (GOAP, 2004). This amounted to about 4 per cent of the net sown area.

Industries

Several major industries are in opeation around Hyderabad, which has now been nicknamed as Cyberabad due to its Information Technology

Information technology

foray and location of major software industries in the city. Another industrial location is Visakhapatnam which is also one of the major sea ports of India. The State is promoting Information Technology in a big way and has one of the IT parks in Hyderabad.

Active industries

Automobiles and Auto components Industry,spices,mines and minerals,Texttiles and apparels,IT industry,Bulk drugs and pharmaceuticals, horticulture

Horticulture

Horticulture is the industry and science of plant cultivation including the process of preparing soil for the planting of seeds, tubers, or cuttings. Horticulturists work and conduct research in the disciplines of plant propagation and cultivation, crop production, plant breeding and genetic...

,poultry farming are the main industries in Andhra Pradesh.

Resources

Andhra Pradesh has the largest deposits of quality Chrysotile

Chrysotile

Chrysotile or white asbestos is the most commonly encountered form of asbestos, accounting for approximately 95% of the asbestos in place in the United States and a similar proportion in other countries. It is a soft, fibrous silicate mineral in the serpentine group of phyllosilicates; as such, it...

Asbestos

Asbestos is a set of six naturally occurring silicate minerals used commercially for their desirable physical properties. They all have in common their eponymous, asbestiform habit: long, thin fibrous crystals...

in India. It accounts for about 93 percent of India's total production of Barite

Barite

Baryte, or barite, is a mineral consisting of barium sulfate. The baryte group consists of baryte, celestine, anglesite and anhydrite. Baryte itself is generally white or colorless, and is the main source of barium...

s. Other important minerals in the state are copper ore, manganese

Manganese

Manganese is a chemical element, designated by the symbol Mn. It has the atomic number 25. It is found as a free element in nature , and in many minerals...

, mica

Mica

The mica group of sheet silicate minerals includes several closely related materials having highly perfect basal cleavage. All are monoclinic, with a tendency towards pseudohexagonal crystals, and are similar in chemical composition...

, coal

Coal

Coal is a combustible black or brownish-black sedimentary rock usually occurring in rock strata in layers or veins called coal beds or coal seams. The harder forms, such as anthracite coal, can be regarded as metamorphic rock because of later exposure to elevated temperature and pressure...

and limestone

Limestone

Tourism

Charminar

Charminar built in 1591 AD, is a landmark monument located in Hyderabad, India. The two words Char Minar of Urdu language are combined to which it is known as Charminar . These are four ornate minarets attached and supported by four grand arches, it has become the global icon of Hyderabad and is...

, Salarjung Museum, Golconda Fort, Tirupathi, Warangal

Warangal

Warangal is a city and a municipal corporation in Warangal district in the Indian state of Andhra Pradesh. Warangal is located northeast of the state capital of Hyderabad and is the administrative headquarters of Warangal District. This district is a combination of three cities: Warangal,...

fort are some of the important tourism locations.

GSDP

The GSDP at current prices(1999-2000) for the year 2009-10 is estimated at Rs.3,64,341 crores as against Rs.3,38,907 crores for 2008-09 reflecting a growth of 7.5%. During last FiveYears, the GSDP of A.P on the average recorded 9.14%, and higher than the Annual Average Growth of GDP (All India) which is 8.49% only. Further,during last three years, the GSDP of AP was consistently more than 10%,which itself is a record. With more than 10% Growth for the past 3 years and due to this high Base effect, further Growth Rate in during 2008-09 is only 5.53%. In spite of Global recession

Global recession

A global recession is a period of global economic slowdown. The International Monetary Fund takes many factors into account when defining a global recession, but it states that global economic growth of 3 percent or less is "equivalent to a global recession".By this measure, four periods since...

and negative growth trends in the major world economies, the State is able to continue the growth path along with the Nation.

Growth of different sectors 2008-2009

The sectoral composition of GSDP growth for 2008-09 in Service sector with 10.06% has maintained the same growth tempo, while the Agriculture sector with 2.27% and industry sector with 0.12% have recorded little lesser growthrate. At All India level (GDP), the Sectoral Growth rate in Service sector is 9.67%, while in Agriculture Sector, it is 1.60%. In these both sectors, our State's Growth rate is higher than All India level. The relative decline in agriculture growth during 2008-09 is due to a very high base effect during the previous years especially last year i.e. 14.85%. However, the foodgrain production has reached a peak of 204.04 lakh tones during the year 2008-09.

Per capita income

The per capita income figure gives a better idea of the standard of living of the people. The Per Capita Income of Andhra Pradesh at current prices is estimated at Rs.39,597 in 2008-09 as against Rs.35,864 in 2007-2008.

Public finance

The finances of Government of Andhra Pradesh are robust due to efficient public finance

Public finance

Public finance is the revenue and expenditure of public authoritiesThe purview of public finance is considered to be threefold: governmental effects on efficient allocation of resources, distribution of income, and macroeconomic stabilization.-Overview:The proper role of government provides a...

management. The State is well in advance in eliminating revenue

Revenue

In business, revenue is income that a company receives from its normal business activities, usually from the sale of goods and services to customers. In many countries, such as the United Kingdom, revenue is referred to as turnover....

deficit and achieving other fiscal targets enacted in APFRBM Act, 2005. The State revenue receipts stood at Rs.69.685 crores in 2008-09 (RE) of which the State's own revenue is Rs.44,138 crores. The revenue receipts under State's own tax

Tax

To tax is to impose a financial charge or other levy upon a taxpayer by a state or the functional equivalent of a state such that failure to pay is punishable by law. Taxes are also imposed by many subnational entities...

es during the year 2008-09 (RE) stood at Rs.35,739 crores as against Rs.28,794 crores in the previous year
registering a growth rate

Economic growth

In economics, economic growth is defined as the increasing capacity of the economy to satisfy the wants of goods and services of the members of society. Economic growth is enabled by increases in productivity, which lowers the inputs for a given amount of output. Lowered costs increase demand...

of 24.12 %. Total expenditure (revenue + capital) stood at Rs.85,363 crores for the year 2008-09 (RE). The capital expenditure

Capital expenditure

Capital expenditures are expenditures creating future benefits. A capital expenditure is incurred when a business spends money either to buy fixed assets or to add to the value of an existing fixed asset with a useful life extending beyond the taxable year...

constituted 20.78% of the total expenditure (revenue + capital). Revenue Surplus for 2008-09 (RE) is Rs.2,066 crores. The Fiscal Deficit is Rs.10,427 crores which 2.81% of GSDP.

Economic changes during 1954–1983

This can be called the 29 year era of 12 centrally nominated chief ministers List of Chief Ministers of Andhra Pradesh. Excluding Kasu Brahmananda Reddy term (7 years), average tenure of a chief minister was less than two years. The cumulative growth during this 30 year period for Indian economy is 311%, and for Andhra Pradesh it was 138%.

Economic changes during the 1980s

This can be called the N. T. Rama Rao

N. T. Rama Rao

Nandamuri Taraka Rama Rao , also known as NTR and fondly referred to as Anna Garu, was an Indian film actor, director, producer, and a politician...

Era (1982–1989).An academic study of Andhra's economic activity using official data collected by the state government of Andhra Pradesh, Govt Of India and World Bank reveal the following highlights.

A Domestic Demand - Supply based economic policy instead of exports oriented policies during this pre-liberalization period resulted in Constant Currency (inflation adjusted) cumulative growth rates of 151% in seven years, one and half times higher than the cumulative growth rate of the 30 years earlier, and 25% higher than the cumulative growth rates of 20 years that followed.
Education reforms, local government empowerment, irrigation and electricity improvements, corruption controls of this period resulted in cumulative per capita income growth rates (corrected to inflation and population growth) ten times the growth rates for the first 30 years and three times the rates of the 20 years that followed. On average a typical telugu citizen was 3000% more productive in improving his/her economic condition than in the 30 years earlier and 450% more productive than the 20 years that followed.
Distributional and social indicators (rural education 51%, child labor (-60%), malnutrition (-81%), infant mortality (-37%), female education (77%)) improved at rates that are yet to be repeated.
Fiscal Management Indices (deficit,foreign debt, debt servicing levels etc) were at their best levels compared to the era the followed when central government allowed higher deficit targets and allowed foreign borrowing directly from world bank as a part of the liberalization regime.

Economic changes during the 1990s

This can be called the three congress CMs(1989 - 1994) and Naidu era (1994 – 2004). The salient aspects of this era are

High level of investment into Hyderabad city infrastructure to support IT export priorities.
Software exports from hyderabad grew at the same pace as India's over all software export growth and elevated Hyderabad to the 9 th largest software exporting city in India.

Economic changes in the new millennium

This can be called the YSR era (2004 – 2009). The salient aspects of this era are

Establishment of the first congress govt since Kasu brahmanda reddy with a stable locally popular leader.
The one lakh crore budget. State government budget due to foreign borrowing, real estate sale, higher allowed deficits, central support to development projects grew from 2000 crores ($2.5 billion) at the beginning of modern era of andhra economics in 1982 to about 1 lakh croress ($20 billion).
Large scale investments into irrigation, rural development, roads, telecom, energy generation and health care
Corporate corruption scandal with Satyam destroying the largest corporate entity to be born out of Andhra Pradesh.

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