The main official ceremony was held at the Indira Gandhi Stadium here with Governor E.S.L. Narasimhan unfurling the national flag and reviewing a colourful parade.
Speaking on the occasion, the Governor said the state was marching ahead on the path of progress with impressive economic growth.
He said the state was making rapid strides in irrigation, industry and other sectors.
The Governor said the administration was shifted from Hyderabad to the upcoming world class capital city Amaravati.
Earlier, he took salute from contingents of the Central Reserve Police Force, Andhra Pradesh Special Police and National Cadet Corps among others.
Chief Minister N. Chandrababu Naidu attended the event. Tableaux of various government departments highlighted welfare and development schemes of the state.
Narasimhan, the Governor of both Andhra Pradesh and Telangana, later returned to Hyderabad to take part in the Republic Day parade in Telangana.