Congress party spokeswoman Jayanthi Natarajan confirmed Reddy´s death and told AFP that "the Indian people and the Congress party had lost a great leader."
Reddy, 60, was a major powerbroker in Indian politics and had been pursuing tie-ups with international investors to turn his state into India´s second-largest software hub after Bangalore in neighbouring Karnataka state.
US ambassador Timothy Roemer paid tribute to Reddy as "a strong supporter of the US-India friendship" and said the minister´s work had reflected the "economic and family ties between the people of Andhra Pradesh and the United States."
Reddy, who was first elected chief minister in 2004, was on a helicopter tour of Andhra Pradesh to visit drought-hit villages and inspect relief schemes put in place during the current weak monsoon season.
"I want to check the delivering mechanism in villages," he told reporters on Wednesday before leaving. "I want to check all the problems like drought and unemployment and check if all policies have been implemented."
Also killed in the crash were Reddy´s special secretary, a security officer, the pilot and co-pilot.
After the helicopter went missing on Wednesday morning, a massive land-and-air search operation was launched.
The air force found the mangled wreckage early Thursday and commandos were lowered to the spot to identify the five bodies, a senior air force official said in New Delhi.
The helicopter was found at the top of a hill 74 kilometres (46 miles) from Kurnool, in a dense forest area of Andhra Pradesh.
Hundreds of Reddy´s supporters and colleagues surrounded his official residence in the state capital Hyderabad to mourn his death, with many women wailing in grief.
"I have not been able to sleep since the chief minister went missing. Now I have lost my hero," local man R. Ramalingan said.
Reddy is survived by his wife and two children.
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