Collection development is a systematic and essential process of building library collection to fulfill the teaching, learning and research needs of its target users. It includes acquisition, selection, evaluation, and preservation of resources according to users‟ requirement. Collection development is not to build, but to develop the collection. This concept makes it explicit that there must be a planning behind it which necessitates an intellectual skill formulated in the way of ‘policies’. Collection development policies are usually formal written statements providing specific guidelines often varied from library to library. The elements of this process are selection, acquisition, relegation and discarding, and collection evaluation. It is a decision-making activity assuring continuity and consistency denoting how much emphasis is to be given upon individual steps in those elements and their relationship. This paper highlights the collection development of five selected university libraries of Rayalaseema region. This paper explains very elaborately the collection development as subject-wise, school-wise and also department-wise of the university and also given budget details. This study found that there is an urgent need to allocate more funds to university libraries to acquire more e-books and e-journals which are more essential for teaching and research purpose.