The overall economy of the state of Andhra Pradesh is poised for a healthy growth in 2008-2009.
The growth rate in the industrial sector is around 8% against the national average of 3.5%. The services sector is likely to register a growth of 8.5% in the first quarter. In spite of the slightly weak monsoon, the agriculture sector is expected to produce more than 170 million tones of foodgrains. According to the Index of Industrial Production, the manufacturing sector registered 7% growth while the mining sector registered a relatively low growth of 3.9%.
Consumption of steel and cement is highest in Andhra Pradesh because of massive construction work like the Jalayagnam irrigation projects, Indiramma housing schemes and private real estate development, in addition to SEZ activity.
The tax collection also showed an improved trend of 22% growth rate over the previous year.
The AP state had registered an overall economic growth of 10.63% in 2007-08 with agricultural sector at 8.38%, industrial activities at 9.88%, and the services sector recorded 11.57%