Reviewing AP Inter 2nd Year Economics Study Material Chapter 10 Economy of Andhra Pradesh Questions and Answers can help students prepare confidently for exams.
AP Inter 2nd Year Economics 10th Lesson Economy of Andhra Pradesh Questions and Answers
Very Short Answer Questions
Question 1.
Explain P4 approach initiated by Andhra Pradesh.
Answer:
1) The P4 approach (Public-Private-People Partnership) is a flagship initiative of Andhra Pradesh aimed at achieving “Zero Poverty by 2029”.
2) It involves a mentorship model where each poor family (Bangaru Kutumbam) is adopted by a mentor (Margadarsi) who provides guidance and support. The government acts as a facilitator, ensures access to services and schemes, and uses real-time monitoring, while encouraging community participation to create jobs and reduce poverty.
Question 2.
Briefly mention the export potential of Andhra Pradesh.
Answer:
- Andhra Pradesh has strong export potential across agriculture, marine, industrial, and services sectors. It is the sixth largest exporting state, contributing about 4.5% of India’s exports.
- The state exports rice (25% of India’s exports), marine products, chillies, tobacco, pharmaceuticals and software services, with a focus on improving quality and becoming a global logistics hub under Swarna Andhra Vision 2047.
Question 3.
Which are the backward districts in AP eligible for Central assistance as per the Reorganisation Act?
Answer:
As per the Andhra Pradesh Reorganisation Act, 2014, seven backward districts are identified for Central assistance:
- North Coastal region: Srikakulam, Vizianagaram, Visakhapatnam
- Rayalaseema region: Kurnool, Anantapur, YSR Kadapa, Chittoor
These districts receive Central assistance under a 90:10 (Centre: State) cost-sharing pattern.
Question 4.
Mention any two schemes of school education in A.P.
Answer:
Any two school education schemes in Andhra Pradesh are:
- Talliki Vandanam – Provides financial assistance of ₹ 15,000 per year to support students’ education and development.
- Mana Badi – Mana Bhavishyathu – Focuses on improving school infrastructure and providing better learning facilities.
Question 5.
Comment on the Global Capability Centres (GCC) in Andhra Pradesh.
Answer:
- Global Capability Centres (GCCs) are offshore units of multinational companies providing IT, business, analytics and R&D services. Andhra Pradesh promotes GCCs through its IT & GCC Policy (2024-29) to make the state a major hub.
- Cities like Visakhapatnam and Vijayawada are emerging GCC hubs, which help in job creation, skill development and attracting investment, strengthening the state’s knowledge economy.
Question 6.
Mention any two central institutions established in AP after state reorganisation, with their locations.
Answer:
Two central institutions established after the Andhra Pradesh Reorganisation Act, 2014 are:
- Indian Institute of Technology (IIT), Tirupati
- Indian Institute of Management (IIM), Visakhapatnam
Short Answer Questions
Question 1.
Write about social welfare schemes of A.P.
Answer:
The Government of Andhra Pradesh is implementing several welfare schemes under the “Super Six”, along with other initiatives aimed at poverty alleviation and social support.
1) “Super Six” Schemes: These schemes provide direct financial and material assistance:
- Talliki Vandanam – ₹ 15,000 per year to support children’s education (Classes I – XII).
- Monthly Financial Aid for Women -₹ 1,500 per month to eligible women (19-59 years).
- Annadata Sukhibhava – ₹ 20,000 per year to farmers for agricultural expenses.
- Unemployment Allowance – Short Answer Questions3,000 per month for educated youth with job creation goal.
- Deepam 2.0 – Three free LPG gas cylinders annually.
- Free Bus Travel for Women – Free travel in APSRTC buses.
2) Other Key Welfare Initiatives
- NTR Bharosa Pension – ₹ 4,000 monthly support to vulnerable groups.
- Anna Canteens – Meals at ? 5 for the poor.
- Dr. NTR Vaidya Seva – Cashless healthcare for about 1.43 crore families.
- Dokka Seethamma Mid-Day Meal & School Kits – Improve nutrition and education.
- PMAY, Jal Jeevan Mission, Saubhagya- Housing, drinking water, and electrification.
- P4 Approach – Targets “Zero Poverty by 2029” through mentorship support.
Question 2.
Explain the impact of AP reorganisation on the resource endowment in Andhra Pradesh.
Answer:
The reorganisation of Andhra Pradesh in 2014 significantly altered the state’s economic landscape and resource endowment.
- Overall Resource Share: After bifurcation, Andhra Pradesh inherited only 46% of the total resources of the combined state.
- Forestry and Biodiversity: Forests became fragmented, as Telangana retained richer forest cover, reducing forest revenue, jobs, and eco-tourism potential.
- Energy and Minerals: Loss of Singareni coalfields affected energy security. Though some minerals like barytes and uranium remained, key resources like limestone, granite, and iron ore were lost, reducing revenue and employment.
- Water Resources: Godavari and Krishna rivers became interstate rivers, causing water disputes and delays in irrigation projects.
- Economic Infrastructure: Loss of Hyderabad created a revenue gap and fiscal strain, forcing the state to rebuild institutions and adopt new development strategies.
Question 3.
Examine the Govt, initiatives for agricultural sector development in Andhra Pradesh.
Answer:
The Government of Andhra Pradesh has adopted a multi-faceted approach to develop agriculture, focusing on sustainability, financial security, and infrastructure modernization.
1) Sustainable and Natural Farming: Through APCNF & ZBNF, the state promotes natural farming to reduce input costs, improve climate resilience, and reduce dependence on chemicals. Support includes interest-free loans, subsidized seeds, and tools.
2) Financial and Legal Support: Schemes like Annadata Sukhibhava (₹ 20,000) and PM-Kisan (₹ 6,000) provide financial aid. Crop Cultivator Rights Cards (CCRCs) help tenant farmers access loans.
3) Institutional and Infrastructure Support: Rythu Seva Kendralu (RSKs) provide inputs and guidance, while farm mechanization, cold storage, and irrigation projects (Polavaram) improve productivity and reduce losses.
4) Market and Future Strategy: Market Intervention Schemes (MIS) ensure fair prices, and focus on seed quality and Agri-Tech (Al, loT, blockchain) under Swarna Andhra Vision 2047 supports long-term agricultural growth.
Question 4.
List out any four approaches and initiatives of the AP Industrial Policy.
Answer:
The Andhra Pradesh Industrial Development Policy (4.0) 2024-29 outlines key approaches to make the state a globally competitive industrial hub.
- Prioritizing High-Growth Industries: Focus on sectors such as electronics, pharmaceuticals, food processing, green energy, semiconductors, and aerospace to drive industrial growth.
- Infrastructure and Logistics: Provision of land consolidation, affordable infrastructure, and efficient logistics to support industries.
- Ease of Doing Business: Implementation of investor-friendly policies including a Single Window Mechanism for quick approvals.
- Support for MSMEs: Establishment of 175 MSME parks with financial assistance, capital subsidies, tax rebates, and employment-linked incentives.
Question 5.
Write a brief note on role of the service sector in Andhra Pradesh.
Answer:
The service sector is a crucial pillar of the Andhra Pradesh economy, acting as a major driver of growth and modernization.
- Dominant Economic Contribution: The service sector is the largest contributor, accounting for 54.2% of GSDP (2024-25), with rapid growth in trade, hotels, and banking.
- Significant Employer: About 31.6% of the workforce is employed in services such as trade, transport, education, health, and government jobs, with focus on IT and logistics.
- Surge in Exports: Service exports, especially computer software, increased sharply from $3.9 billion (2023) to $26 billion (2024), strengthening the state’s global presence.
- Emerging IT and Tourism Hub: Cities like Visakhapatnam and Vijayawada are growing as IT and GCC hubs, while tourism (over 254 million visits) boosts the hospitality sector.
Question 6.
Explain the employment generation strategy of Andhra Pradesh.
Answer:
The employment generation strategy of Andhra Pradesh is a multi-pronged approach focusing on skill development, industrial growth, and support for emerging sectors.
1) Strategic Vision and Skill Development: Under Swarna Andhra Vision 2047, the state promotes employment through education reforms and skill training. APSDC and skill hubs enhance technical, digital, and entrepreneurial skills.
2) Industrial and Infrastructure Expansion: Development of SEZs, industrial parks, and logistics hubs creates jobs in sectors like textiles, electronics, and pharmaceuticals. MSMEs and IT & GCC policy aim to generate large-scale employment.
3) Public Employment and Livelihood Support: Schemes like MGNREGA provide rural employment, while support to fisheries, handloom, and handicrafts ensures inclusive growth. Unemployment allowance (₹ 3,000) supports youth.
4) Future-Oriented Jobs: Focus on green energy, startups, and innovation hubs promotes jobs in renewable energy and digital sectors.
Long Answer Questions
Question 1.
Discuss the characteristics of A.P economy.
Answer:
Characteristics of A.P economy:
1. Strong Macroeconomic Performance
- The Gross State Domestic Product (GSDP) is estimated at ₹16.06 lakh crore (2024-25), with a growth rate of 12.94%, indicating a rapidly expanding economy.
- The Per Capita Income of ₹ 2,68,653 is higher than the national average, reflecting improved living standards. This demonstrates economic resilience and steady development.
2. Structural Shift in Sectoral Composition
- The economy has undergone significant structural transformation:
- Services – 54.2 %
- Industry – 27.6 %
- Agriculture – 18.2 %
- This shows a transition from an agriculture-based economy to a service-oriented economy.
3. Employment Pattern and Challenges
- Agriculture contributes only 18.2% to GSDP but employs 45.6% of the workforce, indicating over-dependence on agriculture.
- Services employ 31.6% and industry 22.8%, reflecting gradual diversification.
- The unemployment rate is 4.1%, while graduate unemployment is around 24%, highlighting skill mismatch. Government established 192 Skill Hubs and aims to create 20 lakh jobs.
4. Rich Natural Resources and Export Strength
- Andhra Pradesh ranks 5th in mineral wealth, with resources such as barytes, limestone, quartz, and uranium.
- It has the 3rd longest coastline (1,053 km), contributing 40% of marine exports and 30% of fish production.
- Known as the “Rice Bowl of India,” it contributes significantly to rice exports along with chillies and tobacco.
- Service exports are also growing strongly, with software exports reaching $26 billion in 2024.
5. Demographic and Human Development Features
- The population is about 53.59 million, with a low growth rate of 0.35%, indicating demographic stability.
- Poverty has declined to 9.2%, reflecting effective welfare measures.
- Better health indicators and institutions such as NT Tirupati and IIM Visakhapatnam contribute to human capital development.
6. Impact of Reorganisation (2014)
- Andhra Pradesh retained only 46% of total resources, creating a weaker economic base.
- The loss of Hyderabad resulted in revenue and fiscal challenges.
7. Infrastructure and Development Focus
- The state is investing in industrial corridors, ports, logistics networks, and irrigation projects.
- Focus on MSMEs, industrial parks, and IT hubs aims to promote employment and industrialization.
8. Future Vision – Swarna Andhra Vision 2047
- Andhra Pradesh aims to become a $2.4 trillion economy by 2047.
- Key focus areas include: Zero Poverty (P4 approach),Farmer and Agri-Tech advancement (ZBNF) Deep-Tech integration (Al, Blockchain, IoT), Global logistics and infrastructure development
- The vision seeks to ensure sustainable, inclusive, and long-term economic growth.
Question 2.
Examine the employment generation strategy of A.P.
Answer:
Employment Generation Strategy of Andhra Pradesh: The employment generation strategy of Andhra Pradesh is a multi-dimensionai approach that combines long-term planning, skill development, industrial growth, and livelihood support to create sustainable employment opportunities.
I) Strategic Vision and Skill Development:
- Swarna Andhra Vision 2047 places employment generation at the core of development, targeting a $2.4 trillion GSDP by 2047.
- It focuses on preparing youth for a technology-driven economy through education reforms and skill-based training.
- AP State Skill Development Corporation (APSDC) and 192 Skill Hubs provide technical, digital, and vocational training.
- These centres also promote entrepreneurship, encouraging self-employment along with wage employment.
- This helps create a skilled workforce required for industrial and service sector growth.
II) Public Employment Schemes and Industrial Expansion:
- MGNREGA and other livelihood programmes provide large-scale wage employment, particularly in rural areas, reducing seasonal unemployment.
- Urban livelihood programmes create employment opportunities in towns and cities.
- The government promotes industrial growth through SEZs, industrial parks, and logistics hubs, attracting investment and generating jobs.
- Sectors such as textiles, food processing, electronics, and pharmaceuticals are prioritized because of their high employment potential.
- MSMEs are supported through subsidies, incentives, and easier credit access, creating local employment opportunities.
III) Startups, Green Jobs, and Inclusive Livelihoods:
- Innovation hubs and incubation centres encourage youth participation in IT, digital services, and startups.
- This promotes modern employment opportunities aligned with global trends.
- Renewable energy projects, organic farming, and sustainable practices generate green jobs.
- Traditional sectors such as fisheries, handloom, handicrafts, and agriculture-related activities continue to support rural and coastal livelihoods.
- These measures promote inclusive growth and reduce regional disparities.
IV) Outcomes and Continuing Challenges:
- Government initiatives helped reduce the unemployment rate from 6.8% (2023) to 5.9% (2024).
- However, challenges remain:
- Regional imbalances in employment opportunities
- Underemployment in agriculture
- Need for continuous skill upgradation to meet industry requirements.
Question 3.
Explain the main features of Swarna Andhra Vision 2047.
Answer:
Swarna Andhra Vision 2047 is a comprehensive long-term development roadmap launched on December 13,2024, aiming to transform Andhra Pradesh into a “Wealthy, Healthy and Happy State” by 2047. It aligns with the national goal of Viksit Bharat 2047 and targets a Gross State Domestic Product (GSDP) of $2.4 trillion, reflecting an ambitious plan for rapid and inclusive growth.
1) Ten Sutras – Core Strategic Framework:
i) Zero Poverty: Focuses on complete eradication of poverty through inclusive growth strategies like welfare schemes and the P4 approach, ensuring that all sections benefit from development.
ii) Population Management and Human Resource Development: Aims at balanced population growth while strengthening education, healthcare, and skill levels, thereby improving the quality of human capital.
iii) Employment and Skilling: Targets creation of 20 lakh jobs and emphasizes skill development programs, ensuring youth are equipped for modern, technology-driven employment.
iv) Water Security: Ensures efficient irrigation, water conservation, and Al-based water management systems, which are essential for agriculture and sustainable development.
v) Farmer & Agri-Tech Advancement: Focuses on modernizing agriculture through smart farming techniques, digital support systems, and sustainable practices, improving productivity and farmer incomes.
vi) Global-Best Logistics: Aims to develop world-class infrastructure, ports, and logistics networks, leveraging the state’s coastline to become a global trade and logistics hub.
vii) Cost Optimization in Energy & Fuel: Promotes renewable energy sources and efficient power generation, reducing costs and ensuring energy security.
viii) Product Perfection: Focuses on improving quality standards of goods and exports, making Andhra Pradesh competitive in global markets.
ix) Swachh Andhra: Emphasizes sanitation, clean environment, waste management, and urban infrastructure, improving living conditions and public health.
x) Deep-Tech in All Sectors: Encourages integration of advanced technologies such as Al, Blockchain, and loT across agriculture, industry, and services to drive innovation and efficiency.
2) Focus on inclusive and Balanced Growth
- The vision ensures inclusive development, addressing regional disparities and improving opportunities for all sections of society.
- It promotes citizen participation, ensuring that development is people-centered.
3) Emphasis on Sustainability and Future Readiness
- Strong focus on green energy, sustainable agriculture, and efficient resource utilization.
- Encourages technology-driven growth, preparing the state for future economic challenges.
4) Improvement in Quality of Life
- The vision prioritizes better healthcare, education, housing, sanitation, and infrastructure, ensuring overall well-being of citizens.
- It aims at creating not just economic growth, but also a healthy and happy society.
Multiple Choice Questions
Question 1.
The forest cover in Andhra Pradesh approximately accounts for:
1) 19 %
2) 23 %
3) 25 %
4) 27 %
Answer:
2) 23 %
Question 2.
Under AP Reorganized Act, 2014, All MS is established in ____________
1) Visakhapatnam
2) Tirupathi
3) Mangalagiri
4) Tadepalligudem
Answer:
3) Mangalagiri
Question 3.
The share of industry and manufacturing sector in Andhra Pradesh GSDP: (As per AP Socio-economic survey 2024-25)
1) 26 %
2) 21 %
3) 16.8%
4) 22.8%
Answer:
4) 22.8%
Question 4.
What does the Society of Elimination of Rural Poverty (SERP) promote through SHGs?
1) Self-employment
2) Handicrafts production
3) Rural Housing
4) Microfinancing
Answer:
1) Self-employment
Question 5.
The GSDP target of Swara Andhra Vision 2047:
1) $ 2.0 trillion
2) $ 2.2 trillion
3) $ 2.4 trillion
4) $ 2.6 % trillion
Answer:
3) $ 2.4 trillion
Question 6.
The following is true regarding the impact of rorganisation of Andhra Pradesh in 2014
1) AP inherited 46 % of resources
2) AP’s forest-based revenue increased
3) The income from mines were not affected
4) Lost deposits of Barytes and Uranium
Answer:
1) AP inherited 46 % of resources
Question 7.
Which of the following statements is not correct?
1) AP IT policy aims to create 10 lakh jobs
2) AP aims to double the share in software exports by 2047
3) AP contributes about 45% of India’s rice exports
4) AP’s graduate unemployment rate is less than the national average.
Answer:
1) AP IT policy aims to create 10 lakh jobs
Question 8.
MEPMA is nodal agency that aims to:
1) Improve municipal governance
2) Eliminate rural poverty
3) Eliminate poverty in urban areas
4) Improve sanitation in urban slums
Answer:
1) Improve municipal governance
Question 9.
The rank of the population growth rate of Andhra Pradesh among the states in 2025 is:
1) 2nd lowest
2) 3rd lowest
3) 4th lowest
4) 6th lowest
Answer:
1) 2nd lowest
Question 10.
Andhra Pradesh is among India’s top exporters of:
1) Cotton, tobacco
2) Chillis, oil seeds
3) Fish and mangoes
4) Chillis and tobacco
Answer:
4) Chillis and tobacco
Fill in the Blanks
Question 1.
Andhra Pradesh is the ____________ largest producer of raw silk in India.
Answer:
second
Question 2.
The amount given annually under Talliki Vandanam scheme is Rs. ____________.
Answer:
15,000
Question 3.
The growth rate of Agriculture sector is ____________ than other two sectors in AP in 2024-25.
Answer:
higher
Question 4.
Under Deepam-2 scheme eligible families get ____________ LPG gas cylinders per year.
Answer:
3
Question 5.
Under Annadata Sukhibhava Scheme, the Annual financial assistance of ____________ will be given to eligible farmers.
Answer:
Rs. Rs. 20,000
One Word Answers
Question 1.
What is the scheme under which farmers can have subsidized drones?
Answer:
RKVY (Rashtriya Krishi Vikas Yojana)- The Kisan Drone Yojana 2025
Question 2.
What does Sankalpam scheme focus on?
Answer:
Life skills (training in core life skills to school children of 6-8 classes)
Question 3.
When was Dokka Seethamma Madhyahna Badi Bhojanam extended to Junior Colleges?
Answer:
January 2025.
Question 4.
Where was the Indian Institute of Science Education and Reserch (USER) was located in Andhra Pradesh?
Answer:
Tirupati
Question 5.
Expand ASHA.
Answer:
Accredited Social Health Activist.