The growth in 2014-15 was 8.39 percent at constant prices, against India's growth rate of 7.3 percent.
West Godavari, Nellore, Chittoor and Srikakulam districts performed well.
Chief Secretary S.P. Tucker said at a district collectors' conference here that the state was aiming at 15 percent growth rate in 2016-17, while focusing on economic development and social sector.
Finance Minister Yanamala Ramakrishnudu said the state already registered 2.1 percent increase in GSDP during 2015-16.
"Keeping a vigil on financial constraints, this year's budget expenditure was more than budget allocation. The departments were able to mobilize funds judiciously," he said.
Delivering keynote remarks on Transforming governance for inclusive and sustainable double digit growth, Chief Minister N. Chandrababu Naidu stressed on drought-proofing the state by next year.
He pointed out that the government's efforts such as cascading and desiltation of tanks were effective in Rayalaseema region.
He said the Pattiseema lift irrigation project on Godavari river was a major initiative to link Godavari with Krishna river, thereby solving the water woes of parched regions.
He said seven projects will be taken up on a priority basis to make the state drought-proof.
Stating the government was at the forefront to make agriculture a viable profession, the chief minister said the government planned to reform the sector by setting up farmers producers organizations.
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