On 2 June 2014, the north-western portion of the state was bifurcated to form a new state of Telangana. Andhra Pradesh's longtime capital, Hyderabad, was transferred to Telangana as part of the division. However, in accordance with the Andhra Pradesh Reorganisation Act, 2014, Hyderabad will remain the de jure capital of both Andhra Pradesh and Telangana states for a period of time not exceeding 10 years. The new riverfront proposed capital in Guntur district is Amaravati, which is under the jurisdiction of APCRDA. The Gross State Domestic Product (GSDP) of the state in the 2016–2017 financial year at current prices stood at ₹6,800.3 billion (US$110 billion).
The state has a coastline of 974 km (605 mi) with jurisdiction over nearly 15,000 km2 territorial waters, the second longest among all the states of India after Gujarat. It is bordered by Telangana in the north-west, Chhattisgarh in the north, Odisha in the north-east, Karnataka in the west, Tamil Nadu in the south and the water body of Bay of Bengal in the east. A small enclave of 30 km2 (12 sq mi) of Yanam, a district of Puducherry, lies south of Kakinada in the Godavari delta to the east of the state.
Andhra Pradesh is composed of two regions: Coastal Andhra, located along the Bay of Bengal, and Rayalaseema, in the inland southwestern part of the state. These two regions comprise 13 districts, with 9 in Coastal Andhra and 4 in Rayalaseema. Visakhapatnam, located on the Bay of Bengal in North Coastal Andhra is the largest city and commercial hub of the state with a GDP of $26 billion, followed in population and GDP by Vijayawada, which is located on the Krishna River and which has a GDP of $3 billion as of 2010.
Andhra Pradesh hosted 121.8 million visitors in 2015, a 30% growth in tourist arrivals over the previous year. The Tirumala Venkateswara Temple in Tirupati is one of the world's most visited religious sites, with 18.25 million visitors per year. Other pilgrimage centers in Andhra Pradesh include the Ameen Peer Dargah in Kadapa, the Mahachaitya at Amaravathi, and the Kanaka Durga Temple in Vijayawada, while the state's natural attractions include the beaches of Visakhapatnam, hill stations such as the Araku Valley and Horsley Hills, and the island of Konaseema in the Godavari River delta.
Lush green farms in Konaseema, East Godavari
Andhra Pradesh economy is mainly based on agriculture and livestock. Four important rivers of India, the Godavari, Krishna, Penna, and Thungabhadra flow through the state and provide irrigation. 60 percent of population is engaged in agriculture and related activities. Rice is the major food crop and staple food of the state. It is an exporter of many agricultural products and is also known as "Rice Bowl of India". The state has three Agricultural Economic Zones in Chittoor district for mango pulp and vegetables, Krishna district for mangoes, Guntur district for chilies.
Besides rice, farmers also grow jowar, bajra, maize, minor millet, coarse grain, many varieties of pulses, oil seeds, sugarcane, cotton, chili pepper, mango nuts and tobacco. Crops used for vegetable oil production such as sunflower and peanuts are popular. There are many multi-state irrigation projects under development, including Godavari River Basin Irrigation Projects and Nagarjuna Sagar Dam.
Livestock and poultry is also another profitable business, which involves rearing cattle in enclosed areas for commercial purposes. The state is also a largest producer of eggs in the country and hence, it is nicknamed as "Egg Bowl of Asia".
Fisheries contribute 10% of total fish and over 70% of the shrimp production of India. The geographical location of the state allows marine fishing as well as inland fish production. The most exported marine exports include Vannamei shrimp and are expected to cross $1 billion in 2013–2014.