Andhra Pradesh’s Economic Growth and Vision 2047 + Banking_SBI_PO?.ToString()?? Banking_SBI_PO?.ToString()+" Current Affairs";

Why in News?
Andhra Pradesh has recorded a significant growth rate of 9.24% in 2024-25, with its Gross State Domestic Product (GSDP) increasing to ₹8.73 lakh crore from ₹7.99 lakh crore in 2023-24. The socio-economic survey for 2024-25, tabled in the Legislative Assembly, highlights strong growth across sectors, improved per capita income, and the state’s ambitious Swarna Andhra Vision 2047.

Key Highlights of Andhra Pradesh’s Economic Growth

1. Sectoral Growth:

• Agriculture and Allied Activities: Projected to grow at 10.70%, reflecting the state’s focus on agricultural development and rural economy.

• Industry: Expected to grow at 6.58%, driven by manufacturing and infrastructure projects.

• Services: Anticipated to grow at 8.53%, showcasing the expansion of IT, tourism, and other service-oriented sectors.

2. Per Capita Income (PCI):

• Andhra Pradesh’s PCI for 2024-25 is estimated at ₹2,68,653, significantly higher than the national average of ₹2,00,162. This indicates improved living standards and economic prosperity for the state’s residents.

3. Debt and Fiscal Management:

• The state’s total debt stood at ₹5,64,488 crore at the end of FY 2024-25 (Revised Estimate), up from ₹4,91,734 crore in FY 2023-24.

• Debt as a percentage of GSDP increased slightly from 34.58% in FY 2023-24 to 35.15% in FY 2024-25.

• Market borrowings accounted for the largest share of debt, with outstanding amounts of ₹4,24,070 crore in FY 2024-25.

Swarna Andhra Vision 2047

Andhra Pradesh has set an ambitious roadmap under Swarna Andhra Vision 2047 to transform itself into a global economic powerhouse. Key targets include:

1. Increasing GSDP to over $2.4 trillion.
2. Achieving a per capita income of over $42,000.
3. Reducing unemployment to below 2%.
4. Increasing women’s workforce participation to over 80%.
5. Ensuring over 95% of the workforce is skilled.

Challenges in Andhra Pradesh’s Economic Growth

1. Rising Debt Burden:

• The state’s increasing debt levels, particularly market borrowings, raise concerns about fiscal sustainability.

• Interest payments on debt have risen from ₹29,481 crore in FY 2023-24 to ₹32,944 crore in FY 2024-25.

2. Sectoral Imbalances:

• While agriculture shows strong growth, the industrial sector’s growth rate of 6.58% lags behind agriculture and services, indicating a need for diversification and investment in manufacturing.

3. Unemployment and Skill Development:

• Despite progress, achieving the Swarna Andhra Vision 2047 targets for unemployment and skill development will require significant policy interventions and investments.

Way Forward

1. Strengthening Fiscal Management:

• Implement measures to reduce debt burden and improve revenue generation through tax reforms and efficient public spending.

2. Boosting Industrial Growth:

• Attract investments in manufacturing, renewable energy, and infrastructure to create jobs and diversify the economy.

3. Enhancing Agricultural Productivity:

• Promote sustainable farming practices, improve irrigation facilities, and support farmers with access to credit and technology.

4. Skill Development and Employment:

• Expand skill development programs to align with industry needs and increase workforce participation, especially among women.

5. Sustainable Development:

• Focus on climate-resilient infrastructure and green energy projects to ensure long-term economic and environmental sustainability.

Conclusion

Andhra Pradesh’s impressive economic growth in 2024-25 reflects the state’s commitment to development and prosperity. However, achieving the ambitious targets of Swarna Andhra Vision 2047 will require addressing challenges such as rising debt, sectoral imbalances, and unemployment. With strategic planning and effective implementation, Andhra Pradesh is poised to emerge as a global economic powerhouse in the coming decades.