Structural Transformation and Sectoral Growth in Andhra Pradesh: An Empirical Assessment of Agriculture, Manufacturing, and Services for Sustainable Economic Development

AbstractThe current study empirically demonstrates the structural transformation and sectoraldevelopment and growth in Andhra Pradesh post-bifurcation in the period 2014-15 to 2024-25(from the Directorate of Economics and Statistics, Government of Andhra Pradesh, Ministry ofStatistics and Programme Implementation (MoSPI) data and the growth in Gross State ValueAdded (GSVA) in Agriculture, Manufacturing (Industry) and Services sector are also examinedin detail. The study indicates a unique path of structural transition, which in the classic economicdevelopment theory (Kuznets-Chenery) is an orderly transition of output and labor fromagriculture to manufacturing and then to services in Andhra Pradesh, which has a “prematureservices-led transition” and a strong, high value agriculture and allied sector (Horticulture,aquaculture and livestock). In the period 2024-25 (First Advance Estimates) (Data in Figures 4.1and 4.3) Services sector contributes 41.53% to the total GSVA at current prices and Agriculture& Allied is 35.29%, and Industry is 23.18% and Manufacturing is 12.00% (Data in Figures 4.3).The empirical assessment underlines the critical structural gap between income and employmentdistribution. Andhra Pradesh has to fill this gap through industrialisation, high-tech agroprocessing and skills-based integration to become one of the key economies of the world and tohave sustainable economic growth.