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GENERAL REVIEW Andhra Pradesh is endowed with abundant natural and human reso urces amid competitive socio-economic advantages. The state has a geographical a rea of 275.04 lakh hectares accounting for 8.37% of the Country s area constituting the 4th largest State in the country. With a projected population of 8.47 Crore s as on 1st March, 2011, the state accounts for 7.16% of country s population making it the 5th most populous State. The State, situated in a tropical region and ha s the 974 km long coastline and stands as the 2nd longest in the country having rich potential for marine fisheries. The state has 63,814 Sq.Kms of Forest area constituting 23.2 % the total geographical area. Andhra Pradesh is endowed with a variety of physiographic features ranging from high hills, undulating plains to a coastal deltaic environment. The state is blessed with major river systems like the Godavari, Krishna, Pennar, Vamsadhara and 36 other rivulets. The state s sh are of dependable flows at 75% dependability from the river systems is estimated at 2764 TMC (Thousand Million Cubic Feet). Andhra Pradesh has bountiful natural resources endowed with fertile land, water and conducive agro-climatic conditio ns. It is an agriculturally-prosperous state and largest producer of rice in Ind ia. The state is also the leading producer of cash crops like Tobacco, Groundnut , Chillies, Turmeric, Oilseeds, Cotton, Sugar and Jute. It produces some of the finest fruit varieties of mango, grapes, guava, sapota, papaya and bananas. Andh ra Pradesh has emerged as a most preferred destination in the Country for Inform ation Technology and IT enabled services and become home for Indian IT majors. W ith several holy pilgrim centres, ports, rivers, beaches and hill stations the s tate is an important tourist attractive place both for national and internationa l travelers. Economy: The economy of Andhra Pradesh since formation has progress ed rather slowly and turned vibrant over a period of time. The broad picture of the A.P. economy since independence appears to follow the millennial historic fl ow indicating rise, decline and eventual restoration. A.P s economy like the nation al economy broke from the past growth trend in and around 1980. The average ann ual growth of the economy of the Andhra Pradesh till beginning of 80s was a litt le over 3% and progressed towards a higher growth trajectory after 80s. The Stat e, since its formation to the beginning of Second Five Year Plan, has successful ly implemented various policy initiatives and growth oriented programs focusing essentially on poverty alleviation and employment generation to record higher gr owth. After a moderate performance during the Ninth Five Year Plan (1997-98 to 2001-02), the economy of the State accelerated in the Tenth Five Year Plan (2002 -03 to 2006-07) to register impressive growth. The growth momentum continued dur ing the 11th Plan also, as the State registered an average GSDP growth rate(at 2 004-05 prices) of 7.93% against All-India s GDP growth rate of 8.16% during the firs t four years(2007-08 to 2010-11) of 11th Five Year Plan. Due to a number of str ategic initiatives put in place in the State, by and large the living standards of the people have improved. The strength of the economy is evident from the rem arkable transition to a high growth path, which has been achieved in the recent years. Macro-Economic Aggregates: The state economy witnessed the strongest phas e since 2004-05 onwards. While the Nation s economy grew at an impressive rate of 8. 62% the performance of the State economy was even more impressive with the avera ge growth of 8.75% during 2005-06 to 2009-10. The distinguished feature of the s tate economy during this period was remarkable progress registered by all the th ree sectors of the economy. The GSDP of the state for the year 2010-11 at consta nt (2004-05) Prices as per advance estimates is Rs.3,71,007 crores as againstRs .3,40,712 crores for 2009-10 (Quick Estimates) reflecting a growth of 8.89% whi ch is higher than the All India GDP growth rate of 8.58% during 2010-11. The sec toral growth of GSDP comprises of 8.39% in Agriculture sector, 7.79% in Industri es sector and an impressive growth of 9.61% in the Services sector. The Per Capi ta Income of Andhra Pradesh at current prices (Advance Estimates) is estimated a t Rs.60,224 in 2010-11 as against Rs.51,025 in 2009-10. At current prices, the Per Capita Income has increased by 18.03 percent while at constant (2004-05) pr ices, it has gone up from Rs.36,345 in 2009-10 to Rs.39,240 in 2010-11 registeri ng a growth rate of 7.97 per cent. Public Finance The State s own tax revenues have grown by 5.45% in the year 2009-10 over the previous year i.e. 2008-09 and stoo d at Rs.35,176 crores. The State s own non-tax revenue has declined to Rs. 7,803 in

the year 2009-10 from Rs.9,683 crores in 2008-09. Sales Tax continues to be the major source of revenue in the State. The revenue realized through Sales Tax du ring 2009-10 was Rs.23,640 Crores as against Rs.21,852 Crores during 2008-09 reg istering an increase of 8.18%. Out of total expenditure of Rs.78,688 Crores duri ng the year 2009-10, capital expenditure constitute 17.53%. Prices The Average D aily Retail Prices of Rice (II sort), Groundnut Oil, Common Tamarind (without se ed) and Onions (Gr II) have shown increasing trend where as Redgramdal (II sort) and Red Chillies Dry (Gr. II) prices have decreased during the year 2010(Jan.De c.) when compared to 2009(Jan-Dec.). The Government has continuously monitored t he price situation and took measures to bring down the prices of Onions, vegetab les and other essential commodities by continuing the Market Intervention Scheme . Steps were also initiated to bring down the prices by procuring and selling at reasonable prices at Rythu Bazaars, the items of Onions, vegetables, tamarind a nd other essential commodities. Consumer Price Index for Industrial Workers (CP I IW) increased by 11.7% in the state during 2010 when compared to the previous ye ar. The Consumer Price Index for Agricultural Labour in the State has increased by 11.43% during when compared to the previous year. The Average Daily Wages of Artisans and Field Labour (both Women and Men) have increased during the year 2 010 (Jan-Dec.) when compared to the previous year. Public Distribution There ar e 44,498 Fair Price Shops functioning in the State. Out of them 6,586 are in urb an areas and 37,912 are in rural areas. There are 1,79,16,901 White cards, 15,57 ,800 AAY and 93,200 Annapurna cards and 29,94,431 pink cards in the State. As a nutritional support to the poor, supply of rice to BPL families at Rs.2/- per kg is being implemented. Seasonal Conditions The rainfall received during the Sout h West Monsoon period for 2010-11 was 810 mm. as against the normal rainfall of 624 mm. recording an excess by 30 %. The rainfall received during the North Eas t monsoon period for 2010-11 was 333 mm as against the normal rainfall of 224mm recording an excess of 48%.