AP Economy Revived After 18 Months Of Challenges

Economy Stabilization Efforts

The Chief Minister said the YSRCP government harmed the AP brand and created a debt-heavy situation. In the YSRCP rule, Rs 10 lakh crore in loans were taken, including by pledging government assets and future income, he said. Naidu added that his government is negotiating with financial institutions to reschedule these loans.

He spoke of the hard work his administration has done in the past 18 months. “It will take time to fully stabilize, but the situation is better than before,” he said. The Chief Minister said this while addressing a press conference at the Secretariat on Monday after the release of GSDP figures for the second quarter of 2025-26. He also spoke of meetings he will have with department heads and a district collector’s conference to achieve the GSDP target.

Impact of Previous Policies on People's Lives

• Naidu attacked the GSDP figures under the YSRCP Government, stating that the figures reflect the impact of the previous mismanagement. He contrasted the TDP government's average growth rate of 13.5% with that of the YSRCP government, at 10.32%, and estimated that the state lost Rs 7 lakh crore in GDP and Rs 76,195 crore in revenue collections.
• Naidu said resuming growth needed revival of centrally sponsored schemes. “After the coalition government was formed, I approached ministries in Delhi to restart stopped schemes. Officials informed us that previous funds were diverted for other needs. We spent the funds and submitted usage certificates. We revived 93 centrally sponsored schemes,” he said.

Changes in Central Regulations

The Chief Minister said the Center had opened special accounts for the implementation of centrally sponsored schemes owing to irregularities under the previous government. “The system was changed because of past mistakes,” he added.

Waste Management Challenges

Naidu said the state inherited 85 lakh tons of garbage from the previous government. He outlined plans to make towns and villages garbage-free by January 1, 2026, after which 100% garbage collection will be implemented in all areas.

Electricity Sector Reforms

Naidu faulted the previous mismanagement in the electricity sector, where debts mounted to Rs. 32,000 crore. According to him, the previous government paid a staggering Rs. 9,000 crore to manufacturing companies without using one unit of solar or wind power. The present administration will see that the electricity system is managed efficiently without increasing the charges. Naidu said the ongoing reforms such as Super-6, Super-8, and WhatsApp governance would lessen the need to visit the government offices physically. Reforms in the education system were also afoot.

Agricultural Policy and Cropping Patterns

He told farmers to grow crops according to local consumption. Production in excess would lead to low market demand and price control. He said there was a health threat from rice consumption, so grow crops that are of demand by the public.

Horticultural Development in Rayalaseema

Plans are afoot to develop Prakasam district and the Rayalaseema region into a horticultural hub. As many as 51 varieties of fruits, including bananas, pomegranates, and dates, are being grown in Anantapur now. Rythu Seva Kendra units are being set up to guide agricultural activity by the government.

Modern Farming Practices

• Naidu introduced a model farmer with an income of Rs. 20,000 to Rs. 40,000 per acre by practicing natural farming, fish culture, and vegetables. He called upon tenant farmers to unite, to bring about policy changes, particularly those who invest heavily in bananas.
• Water Management and Drought Prevention Efficient irrigation management is on the cards, including minor irrigation pond restoration. Water reserves stand at 950 TMC. The groundwater level has risen from 7.5 meters to 6.08 meters through check dams, crop pits, and contour ditches. The aim is to reach 3 meters in the next two years, which could save Rs. 5,000 crore in electricity costs for water pumps.