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Visakhapatnam: Andhra Pradesh’s services sector now contributes 49.5 per cent to the state’s economy but remains below the national average of 54.5 per cent, classifying it as a “moderate-service economy,” according to NITI Aayog’s latest report, India’s Services Sector: Insights from GVA Trends and State-Level Dynamics.The report places Andhra Pradesh 15th among all Indian states in service-sector performance, though the state has shown improvement in segments like hospitality and financial services. The hotels and restaurants segment has seen the most notable rise, improving from ninth place in 2011–12 to fifth in 2023–24. Financial services also made strong progress, with the state entering the top 10 for the first time. The state’s overall economic growth averaged 5.9 per cent annually, ranking 11th nationally, while per capita income grew by 5.2 per cent per year, placing it 10th. Andhra Pradesh’s per capita income for 2023–24 stood at Rs 1,92,300, compared with the national average of Rs 2,25,100. Within the services sector, trade, hotels, and restaurants account for the largest share at 22.4 per cent, followed by real estate and professional services at 18.3 per cent, public administration at 13.8 per cent, and financial services at 9.7 per cent. Transport and storage contribute 8.6 per cent, education 7.1 per cent, and health services 4.2 per cent. However, the transport and storage segment slipped from fifth to seventh position nationally. Services currently provide 38 per cent of total employment in Andhra Pradesh and are projected to grow to 46 per cent by 2030, driven by logistics, education, and digital infrastructure. NITI Aayog identified Visakhapatnam as the state’s primary service hub, contributing nearly 20 per cent of total service output through logistics, ports, and IT industries. Vijayawada–Amaravati serves as a financial and administrative centre, while Tirupati is emerging as a tourism and cultural services hub.
