Visakhapatnam: According to NITI Aayog’s most recent report, India’s Services Sector: Insights from GVA Trends and State-Level Dynamics, Andhra Pradesh’s services sector currently accounts for 49.5% of the state’s GDP, which is below the 54.5 percent national average. As a result, the state is classified as having a “moderate-service economy.” Even though the state has improved in areas like financial and hospitality services, the survey ranks Andhra Pradesh 15th out of all Indian states in terms of service-sector performance. The most significant increase has been in the hotels and restaurants industry, which went from ninth in 2011–12 to fifth in 2023–24. Strong success was also made in financial services, as the state made its maiden appearance in the top 10.
The state’s per capita income increased by 5.2% annually, placing it in 10th place nationwide, while its overall economic growth averaged 5.9% annually, making it 11th. In 2023–2024, Andhra Pradesh’s per capita income was Rs 1,92,300, whereas the national average was Rs 2,25,100. Trade, lodging, and dining make up the largest portion of the services sector (22.4%), followed by professional and real estate services (18.3%), public administration (13.8%), and financial services (9.7%). Health services account for 4.2%, education for 7.1%, and transportation and storage for 8.6%.
But nationwide, the transport and storage category fell from fifth to seventh place. In Andhra Pradesh, services currently account for 38% of all jobs, and by 2030, that percentage is expected to rise to 46% thanks to digital infrastructure, education, and logistics. According to NITI Aayog, Visakhapatnam is the state’s main service hub, accounting for around 20% of all service output from the ports, IT, and logistics sectors. Tirupati is becoming a destination for tourism and cultural services, whereas Vijayawada-Amaravati is a centre for finance and administration.
