ABSTRACT
This chapter investigates the political roots of the policy shift in the state that created what Arvind Panagariya and M. Govinda Rao call the 'economic miracle of Andhra Pradesh (AP).' It deals with Andhra Pradesh in its pre-bifurcation form; hence, when this study discusses Andhra Pradesh, it refers to the state, as it existed before the formation of Telangana as a new state in 2014. The population of Andhra Pradesh contributed 6.99% of India's total population. AP's economy includes a broad range of activities, from traditional agriculture in the rural areas to the information technology industry in Hyderabad. The chapter shows that the post-reform growth in the net state domestic product is mainly based on the growth in the service sector and presents detailed information about Andhra Pradesh's society and economy. Moreover, the Telugu Desam Party government welfare program had led to decreasing the availability of resources for economic development.
