Amaravati: Chief Minister Nara Chandrababu Naidu, who in his previous tenure as CM of undivided AP earned the sobriquet of being its ‘CEO’, on Monday unveiled the state’s second quarter (Q2) economic performance for 2025-26, projecting a sharp rebound in output even as he delivered one of his strongest indictments yet of the mismanagement of the economy under the previous regime.

Naidu said the state was “recovering from a period of systemic decay”, asserting that the momentum lost between 2019 and 2024 had cost the state Rs 7 lakh crore in GSDP and more than Rs 76,000 crore in potential revenue.

Releasing data through a detailed presentation, the Chief Minister said the state’s Gross State Domestic Product at current prices grew 11.28 per cent in the July-September quarter, outperforming the national GDP growth of 8.7 per cent. The state’s GVA expanded 11.30 per cent, also ahead of the national figure. The value of the state economy in Q2 stood at Rs 4,00,377 crore, up from Rs 3,59,778 crore a year earlier. Naidu argued that this rebound reflects the “restoration of systems” and renewed focus on investment, ease of doing business, and boost to infrastructure. He claimed the previous YSRCP regime had “destroyed institutions, raised high-interest debt, and pushed the state into fiscal distress,” forcing the current government to undertake loan restructuring.

“When the brand erodes, interest rates rise. We inherited a state on ventilators,” he said.

Sectoral data showed the industrial economy staging the most dramatic turnaround. Industrial GVA rose 12.20 per cent, compared to just 2.78 per cent a year earlier, powered by a 19.12 per cent surge in electricity generation and an 18.43 per cent expansion in mining. Manufacturing output touched Rs 41,201 crore, up 11.66 per cent, while construction grew 11.81 per cent.

Agriculture and allied sectors grew 10.70 per cent, supported by a 23.95 per cent rise in paddy output and a staggering 151 per cent jump in banana production. Fisheries and aquaculture also logged robust expansion, with shrimp production rising 27 per cent. Milk output, the only major laggard, fell 3.62 per cent.

Services, historically Andhra Pradesh’s strongest economic pillar, expanded 11.30 per cent. Real estate posted 14.31 per cent growth, trade and hospitality 8.50 per cent, and transport and logistics nearly 6 per cent.

Naidu contrasted the latest results with what he described as the “lost five years” under YSRCP rule, noting that GSDP growth averaged 10.32 per cent between 2019 and 2024, compared with 13.49 per cent in the 2014–19 i.e. the TDP-led period. Per capita income, he said, also stagnated under the previous regime, rising from Rs 1,54,031 in 2018-19 to only Rs 2,37,951 in 2023-24. The current year, he said, has already lifted that to Rs 2,66,240, well above the national average of Rs 2,05,324.

The Chief Minister linked the state’s long-term development trajectory to policies framed “25 years ago” (by him), citing the IT sector’s role in elevating the per capita income of Telugu people in both states and arguing for renewed investment in deep-tech, agritech, energy, and logistics.

The Chief Minister launched a blistering political attack on YSRCP leader Y S Jagan Mohan Reddy over his remarks describing the alleged money-laundering incident at the Tirumala temple’s parakamani as “a minor crime”.

Calling the comment “shameful”, Naidu said no political affiliation would shield anyone involved in sacrilege.

Despite the political edge, Naidu framed the economic narrative as a turnaround story.

The state achieved 41 per cent of its annual GSDP target in the first six months, with total output for April–September reaching Rs 7,58,270 crore. The government is targeting Rs 18,65,704 crore in GSDP for the full fiscal, implying a year-end growth rate above 17 per cent.

Naidu said the government had revived 93 central schemes, restarted stalled capital projects, accelerated capital expenditure, and restored investor confidence, claiming investment commitments worth Rs 13 lakh crore at the recent Partnership Summit and over Rs 8 lakh crore cleared by the state’s investment board.

“The public needs to know the financial situation we inherited. We are rebuilding the state brick by brick, and we will not run away from difficult decisions,” he said.