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Scope For AP, TG To Spur Rural Growth

The New Indian Express Tirupati

|

February 02, 2025

Andhra Pradesh seeks to become a $2.5 trillion (₹216.48 lakh crore) economy by 2047, meaning that it would have to grow over the next 22 years at a CAGR of 13.53% from its current (2024-25) GSDP of $190 billion (₹16.41 lakh crore).

- KN Kumar IAS (Retd) Former Chairman, Meghalaya Farmers' (Empowerment) Commission

Andhra Pradesh seeks to become a $2.5 trillion (₹216.48 lakh crore) economy by 2047, meaning that it would have to grow over the next 22 years at a CAGR of 13.53% from its current (2024-25) GSDP of $190 billion (₹16.41 lakh crore). That is, the economy has to expand by 13 times in 22 years.

Theoretically, it may be possible, but practically, an unnerving target. Post bifurcation, AP's growth rate has been flat, relative to Telangana. Further, fiscal prudence, (or the lack of it) is also a matter of concern for both Telugu States. While revenue from own tax sources and Central transfers amount to ₹1.77 lakh crore, AP's debt is ₹4.91 lakh crore (2023-24). In other words, AP has a current debt liability thrice that of its annual income. Some of this accumulated debt is certainly attributable to profligacy, or mismanagement.

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