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Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2013 NSDC. All Rights Reserved.
District Level Skill Gap Study for
Andhra Pradesh
Final Presentation
2 Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2013 NSDC. All Rights Reserved.
Agenda
Objectives of the Study 3
Methodology 5
State Profile 8
Education & Skill Development 14
Estimation of Skill Gap 22
Aspiration of Youth 31
Challenges in the skill development eco-system 35
Recommendations 38
3 Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2013 NSDC. All Rights Reserved.
Agenda
Objectives of the Study 3
Methodology 5
State Profile 8
Education & Skill Development 14
Estimation of Skill Gap 22
Aspiration of Youth 31
Challenges in the skill development eco-system 35
Recommendations 38
4 Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2013 NSDC. All Rights Reserved.
Objectives of the study
• Review the district-wise socioeconomic profile, focusing on demography, economic profile and the state of
education.
• Identify developmental opportunities keeping in mind factor endowments and stakeholder perspectives.
• Identify specific developmental initiatives that impact employment generation.
• Articulate the aspirations of the youth.
• Identify the current and future (next 10 years) skill and manpower requirements by industry, and the existing
and projected skill gaps.
• Assess the existing vocational training infrastructure, both private and government.
• Suggest suitable, specific and actionable interventions or recommendations to address the skill gap
5 Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2013 NSDC. All Rights Reserved.
Agenda
Objectives of the Study 3
Methodology 5
State Profile 8
Education & Skill Development 14
Estimation of Skill Gap 22
Aspiration of Youth 31
Challenges in the skill development eco-system 35
Recommendations 38
6 Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2013 NSDC. All Rights Reserved.
Methodology…(1/2)
Skill Gap Study- District
wise
Quantitative Tools
Primary- Interview
schedules with youths,
industries, VTIs
Secondary- data gathering
from recent reports,
statistical abstract,
census and population, industrial reports,
education etc.
Qualitative Tools
Observations, In Depth
Interviews with key
stakeholders
Key Activities
• Develop
implementation
approach
(interview
schedules,
training etc.)
• Field Survey
deploying teams
for interviews, in-
depth interviews
• Analysis of
preliminary
findings, case
studies etc.
Key Stakeholders
• VTIs, Colleges
• Industries &
Associations (CII
support); Labour
Unions; District
key officials
• Youths
Primary Research
Secondary Research Skill development
planning Key Activities
• Data of workforce,
education and
district statistics
etc.
• Workforce
projections of the
demand and supply
in terms of:-
•Workforce
participation
rates
•Growth rates
•Assumptions
• Support Systems of
each district in
terms of :-
•Educational
Institutes
•VTIs
Key Activities
• Analysis and
development of
findings
• Preparation of
district face
sheets
• Optimization plans
for each district
• State Action Plan
Key outcomes
• District Skill
Development Eco
system- report
• Action plan for the
state- report
• Sharing sessions
with primary and
secondary
stakeholders like
NSDC, REEMAP,
PIAs etc.
7 Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2013 NSDC. All Rights Reserved.
Approach…(2/2)
• Primary Research: Emphasis has been given to primary
data collection to get the perspectives of all the
stakeholders involved—government officials, industry
associations, vocational training providers, labor unions and
the youth.
– Cluster based approach for the survey
– Each cluster had a field team, led by a cluster
supervisor and supported by a team of three
investigators
Activity Total
Sample Size
Employer Survey 420
Vocational Training Institutions
Survey
237
Youth Survey 1384
In depth Interviews with
Government Departments, College /
University, Industry associations
145
• Secondary data collection: Secondary data have been collected from project records, published reports (2011
Statistical Abstract report and district-wise handbook published by the Directorate of Economics & Statistics,
Annual Survey of Industries, Planning Commission Report, and Socio-Economic Survey Andhra Pradesh),
discussions with project staff and other functionaries, consultations with stakeholders and group discussions.
• Projections for 2022: Skill gap model for the state adopted through projecting the demand and supply of
workforce over a period by using regression models and trend analysis
8 Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2013 NSDC. All Rights Reserved.
Agenda
Objectives of the Study 3
Methodology 5
State Profile 8
Education & Skill Development 14
Estimation of Skill Gap 22
Aspiration of Youth 31
Challenges in the skill development eco-system 35
Recommendations 38
9 Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2013 NSDC. All Rights Reserved.
Demographic Indicators
Andhra
Pradesh India
2011 2011
1 Total Population (In Millions) 84.6 121
2 Sex Ratio (females per 1000 males) 992 940
3 Percentage Decadal Growth (2001-2011) 11.10 17.64
4 Density (persons per sq.km) 308 382
Economic Indicators 2012-13 2012-13
5 GSDP as a percentage of all states GSDP 7.8 100
6 Average GSDP growth rate (%)* 16.0 15.6
Human Development Indicators 2011 2011
7 HDI Rank(Out of 23) 15
Poverty Indicators
8 People below Poverty Line (%) 21.10 29.80
Industrial Infrastructure 2013 2013
9 PPP projects (No) 100 881
10 SEZs (No) 76 385
Demography & Development Index
• The Census 2011, places Andhra Pradesh as India's
• fourth largest state by area and
• fifth largest state by population, 7% of the
country’s population.
• State’s GSDP growth rate is higher than all India.
• State accounts for 20% of the nation’s SEZ and 11%
of PPP projects.
• HDI ranking on the lower side in comparison to other
states in India
10 Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2013 NSDC. All Rights Reserved.
Economic Profile - State
Sector level contribution to GSDP (INR crore)
• The top five districts of the state in terms of GDP are
Hyderabad, Rangareddy, Vishakhapatnam, East Godavari
and Krishna
• Between 2004-05 and 2012-13, the average annual GSDP
growth rate was 8.91 percent
• Service sector has emerged as the greatest contributor to
State GSDP over the years.
• Agriculture sector, although still employing the largest share
of workforce, contributes minimum to the GSDP.
• Growth has been mainly driven by the services sector.
59789 60966 71563 72108 73509 79631 78408
54557 60042 70611
83883 89238 97465
104614 113812
126379 142183
171640 185047
204846
224927
2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12
Agriculture Sector Industry Sector Services Sector
State GSDP at Constant (2004-05) Prices
9.57%
11.18% 12.02%
6.88%
5.98%
9.96%
6.81% 9.48% 9.57% 9.32%
6.72%
8.39% 8.40%
6.88%
2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12
Andhra Pradesh India Source: Mospi
11 Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2013 NSDC. All Rights Reserved.
34%
23%
18%
10%
4% 4%
7%
Exports break-up, Andhra Pradesh (2011-12)
Software (IT & ITeS)
Engineering items
Drugs & pharma andchemical plastics
Agro-based and forestproducts
Leather, animal andmarine products
Mineral & mineralproducts
Economic Profile - State
• The highest contribution to the state’s total exports is by
computer software at around 34.0 per cent.
• Other major exports items are drugs & pharmaceuticals, fine
chemicals, engineering products and agriculture and agro-
based products.
• During 2012-13, outstanding investments in Andhra Pradesh
totaled ~INR 57,634 crore.
• The electricity sector accounted for around 28 per cent of
total outstanding investments, followed by manufacturing (25
per cent) and services (19 per cent).
Source: Andhra Pradesh Socio-Economic Survey 2012-13
28%
25% 19%
12%
12% 4%
Break up of outstanding investments by sectors (2012-13)
Electricity
Manufacturing
Services
Irrigation
Real Estate
Mining
Source: Andhra Pradesh Socio-Economic Survey 2012-13
12 Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2013 NSDC. All Rights Reserved.
Economic Profile: New Investments
Industries (Investment :INR
million)
2010-11 2011-12 2012-13
Manufacturing 298266.3 831447.5 210835.9
Textiles 8548.1 1460 0
Metal & metal products 34067.9 34087.5 80400
Machinery 18169 117200 8850
Transport Equipment 36660 0 5877.9
Misc Manufacturing 34737.6 25250 0
Hotels & tourism 2776.6 810 1155
Wholesale & retail trading 23900 1536 5000
Transport Services 30354.2 435076.4 7686.1
Communication Services 2500 0 6000
Information Technology 0 250 0
Misc Services 40193.7 44543.1 17960.1
Health Services 3668.8 11620 3900
Recreational Services 816.7 23755.5 6500
Construction & real estate 207468 89072.7 9750 Source: CMIE
0
20
40
60
80
100
120
140
Number of projects
2010-11 2011-12 2012-13
• Declining trends is seen in the number of projects across sectors especially for 2012-13 in comparison to
preceding year;
• Due to the decline in investment, demand for manpower has also declined drastically especially in manufacturing,
textiles, IT and construction
13 Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2013 NSDC. All Rights Reserved.
Economic Profile- Industrial Clusters
Mango Jelly
Cashew Processing
Marine Food
Oil Mills
Graphite Crucibles
Roofing tiles
Stone Polishing
Granite tiles
Bulk drugs and formulations
Imitation Jewelry
Readymade garments
Leather tanning
Brass utensils
Pneumatic Hammers Source: MSME-Development Institute -AP
14 Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2013 NSDC. All Rights Reserved.
Agenda
Objectives of the Study 3
Methodology 5
State Profile 8
Education & Skill Development 14
Estimation of Skill Gap 22
Aspiration of Youth 31
Challenges in the skill development eco-system 35
Recommendations 38
15 Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2013 NSDC. All Rights Reserved.
Snapshot of Literacy in the State
Literacy (in 2011) Andhra
Pradesh India
Overall Literacy Rate
(in %) 67.66% 74.04%
Male Literacy Rate
(in %) 75.56% 82.14%
Female Literacy Rate
(in %) 59.74% 65.46%
Urban Literacy 80.54% 84.98%
Rural Literacy 61.14% 68.91%
Classes I - V (6-10years)
Classes VI - VIII (11-13 yrs)
Classes I - VIII (6-13years)
99.5
80.1 92
116
85.5
104.3
Gross enrollement ratio
Andhra Pradesh India
Source: Provisional Census 2011 Source: Provisional Census 2011
• As per provisional census 2011, in all India literacy rankings, Andhra Pradesh’s ranking slipped from 21 to 23 in 2011 as compared
to 2001.
• Female literacy remains an area of concern with the rate being much below the national average, State’s stands 29th in rank
among the 35 total states.
• From 2001 till 2011, the number of total students in the school has increased from 131.2 lakh to only 133.91 lakh. Although, the
number of students in primary education have decreased from 89 lakh to 70.8 lakh showing lower enrollment rate.
16 Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2013 NSDC. All Rights Reserved.
Education Infrastructure
Primary enrolment
72.40 Lakh
Upper primary enrolment
38.5 Lakh
Secondary Enrolment
21.43 Lakh
Higher Secondary
14.88 lakh
College
8.54*
lakh
Source: Flash Statistic DISE, SEMIS 2012-13, Census 2011
*Includes graduates and post graduates, 2010-11
Other Indicators
Apparent survival rate up
to grade V 86
Retention Rate (Primary) 82.8
Total Repeaters (Primary) 89,666
% girls enrolment (Primary) 49.3
67.9 percent of Std VI-VIII students can read
English sentences in the State against 33.8
percent of National average indicating better
quality of education.
Maximum drop outs in upper primary and higher
secondary was observed; which resulted less
intake in colleges
Flash Statistics 2010-11
Source: Annual Status of Education Report 2012 (ASER), Pratham
17 Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2013 NSDC. All Rights Reserved.
Education Infrastructure
Course No. of Institutions Intake
Engineering 707 3,35,00
MCA 644 46,795
MBA 926 86905
B. Pharmacy 290 29520
Polytechnics 263 76,000
D. Pharmacy 47 2,560
B.A, 24%
B.Sc. 40%
B.Com 36%
Composition of Graduates in A.P
Total Graduates in 2010-11 : 3,38,907
M.A. 19%
M.Sc. 46%
M.Com. 14%
MCA 10% MBA
11%
Composition of Post Graduates in A.P
Total Post Graduates in 2010-11 : 26,224
Source: Provisional Census 2011
Source: Provisional Census 2011 Source: Provisional Census 2011
Large number of
infrastructure
for technical
and science
related courses
present in the
state
Large number of
science
graduates and
engineers in the
State
18 Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2013 NSDC. All Rights Reserved.
Online portal for
registration of
candidate &
monitoring
Post Placement Service tracking
Training of district team
Communication and awareness generation campaigns
Target: Skill 14
lakh Youth by
2014
Implementation through PPP model
Estimated Budget of INR 1700 crore
INR 777 crore for
implementation in
2012-13
Total 566 centres operational
Total 4,18,229 studnents placed
Cover 25 sectors with 328 courses being delivered
State Skill Development Initiatives: Rajiv Yuva Kiranalu
mission
• Rajiv Yuva Kiranalu (RYK) is a flagship programme initiated by Government of Andhra Pradesh to provide skill
based training and employment to the youth.
• The schemes aims to start candidate's training within 3 months of registration at the website
Source: RYK annual report 2012, As on 22nd December 2013,RYK placements and centres report on www.ryk.cgg.gov.in
19 Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2013 NSDC. All Rights Reserved.
Sub Missions of the state scheme
Sub Missions Area of responsibility
Labour Employment and Training Responsible for identification, training and employment of unemployed urban youth
passing out from Industrial Training Institutes in the state
Mission for Elimination of Poverty
in Urban Slums (MEPMA)
Responsible for training and employment of unemployed youth that belong to SHG
families of urban slums
Employment Generation and
Marketing Mission (EGMM)
Responsible for identification, training and employment of unemployed youth in rural
areas with special focus on the SHG households
Technical Education Department
(TED)
Responsible for ensuring placement of students passing out of the technical &
professional institutions by establishing an organic linkage between the academic
institutions and industries/services
Disabled Welfare Department
(DWD)
Responsible for identification, training and employment of physically challenged youth in
the urban and the rural areas and headed by the Director/Commissioner, Disabled
Welfare.
Minority Welfare Department
(MWD)
Responsible for mobilization, training and employment of Minorities in the State except
Hyderabad District.
Hyderabad Sub-mission Responsible for mobilization, training and employment of all categories of youth in
Hyderabad city from slum, non-slum areas with all qualifications including the differently
able youth and minorities.
20 Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2013 NSDC. All Rights Reserved.
Other Vocational Training Providers
Government
Training
Providers
Number of
institutions*
Trades Covered
ITIs 105 Electronics ,Fitter, Draughtsman Civil
Welder,
Hospital attendants
Dress Making, Computer Operator, Mechanic
ITCs 670
Women 25
Polytechnic 251
Private Training Partners Particulars** Trades Covered
NSDC Training Partners:
Britti Prosikshan, Centum WSI,
Empoer Pragati, Future Sharp,
Gram Tarang, IIJT, IL&FS,
Involute, Labournet, Laqsh,
Laurus
63 centers
22 out of 23 districts covered
57,500 students trained
BFSI
Retail
Textiles
Electronics & IT hardware
Tourism & Hospitality
ITES BPO
Construction
Automobile/ Auto Components
*Source: DGET **As on September 2013
21 Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2013 NSDC. All Rights Reserved.
Other Skill Development Schemes
Highlights
Craftsmen Training
Scheme
• 140 ITIs, trained 24,250 students in 2012-13
• 658 ITCS, trained 74,500
Vocational Training
Improvement
Project
• Centrally sponsored scheme with World Bank assistance
• 25 Government ITIs
Modular
Employable Skills
Scheme
• 950 Vocational Training Providers of which 454 were Government providers
upto March 2012.
• 19,078 candidates were trained up to March 2012
Rajiv Udyogasri
Society
• 8,90 Lakh unemployed youth were provided placements through the efforts of
the society up to 31.03.2011.
22 Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2013 NSDC. All Rights Reserved.
Agenda
Objectives of the Study 3
Methodology 5
State Profile 8
Education & Skill Development 14
Estimation of Skill Gap 22
Aspiration of Youth 31
Challenges in the skill development eco-system 35
Recommendations 38
23 Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2013 NSDC. All Rights Reserved.
Incremental Demand and Supply in the State_ Summary
….(1/6)
Year 2016-17 2021-2022
Incremental Demand 62,77,157 47,64,546
Incremental
Supply 37,97,574 35,74,027
• Incremental demand for skilled worker is 59 percent, semi skilled is 18 percent and minimally skilled is 23
percent out of the over all demand.
• Sectors with largest demand over the years in the state will be CONSTRUCTION, HOSPITALITY, BFSI & IT/ITES
sector.
• Large section of workforce is expected to move from agriculture sector to other activities, resulting in negative
demand for workforce in the sector.
• Current slowdown in manufacturing demand has resulted in low requirement of workforce in the sector.
• Districts with high manpower requirements are Mahbubnagar, Karimnagar, Guntur and Visakhapatnam
• District with high manpower supply are Mahbubnagar, Kurnool, Anantapur and Guntur
• The state is expected to witness large inter state and inter sector labor migration.
24 Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2013 NSDC. All Rights Reserved.
Sector wise Incremental Workforce Requirement …(2/6)
Skill Gap (in '000s) 2012-2017
Skilled Semi-Skilled Minimally Skilled
Agriculture & Allied Activities 27 136 516
Mining & Quarrying 43 -1 40
Construction 813 996 686
Tourism, Travel & Hospitality 1695 -224 -309
Banking & Financial Services Insurance 505 61 14
Real estate 119 161 24
Food processing* 29 0 29
Chemicals & Pharmaceuticals* 63 34 29
Coke, refined petroleum and nuclear fuel* 11 6 5
Rubber and plastic products* 37 21 17
Auto & Auto components* 38 20 19
Metals & non metallic products* 29 13 16
Textile & leather* 71 37 34
Wood & Paper products* 14 7 7
Other Services 264 -199 -181
Electricity, gas & water supply 4 2 2
Transportation, Logistics, Warehousing &
Packaging 129 66 22
IT & ITES Sector 249 26 5
*Manufacturing trades
25 Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2013 NSDC. All Rights Reserved.
Sector wise Incremental Workforce Requirement …(3/6)
Skill Gap (in '000s) 2017-2022
Skilled Semi-Skilled Minimally Skilled
Agriculture & Allied Activities -44 -218 -830
Mining & Quarrying 25 20 27
Construction 807 864 1291
Tourism, Travel & Hospitality 582 262 175
Banking & Financial Services Insurance 390 176 117
Real estate 73 78 116
Food processing* 29 17 11
Chemicals & Pharmaceuticals* 63 38 25
Coke, refined petroleum and nuclear fuel* 11 7 5
Rubber and plastic products* 37 22 15
Auto & Auto components* 42 25 17
Metals & non metallic products* 29 18 12
Textile & leather* 71 43 28
Wood & Paper products* 14 8 6
Other Services -140 -65 -39
Electricity, gas & water supply 4 2 2
Transportation, Logistics, Warehousing &
Packaging 123 63 21
IT & ITES Sector 258 27 5
*Manufacturing trades
26 Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2013 NSDC. All Rights Reserved.
District wise Incremental Workforce Requirement …….(4/6)
Skill Gap (in
'000s)
2012-2017 2017-2022 Skilled Semi-Skilled Minimally
Skilled Total Skilled Semi-
Skilled Minimally
Skilled Total
Srikakulam 99 15 -28 85 58 19 -34 43
Vizianagaram 129 39 19 187 87 41 -3 126
Vishakhapatnam 372 109 37 519 232 157 124 514
East Godavari 245 -48 -323 -126 121 -24 -329 -233
West Godavari 169 43 62 275 89 48 13 149
Krishna 217 32 -94 155 126 70 26 222
Guntur 179 101 266 546 92 117 288 496
Prakasam 134 76 160 371 74 79 166 319
Nellore 166 81 146 393 112 84 147 343
Chittoor 178 32 -54 156 108 37 -69 75
Cuddapah 125 60 134 318 71 75 171 317
Anantapur 147 37 35 220 71 35 -3 103
Negative incremental demand in districts is largely due to fall in demand in agriculture sector.
27 Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2013 NSDC. All Rights Reserved.
District wise Incremental Workforce Requirement……. (5/6)
Skill Gap (in
'000s)
2012-2017 2017-2022 Skilled Semi-Skilled Minimally
Skilled Total Skilled Semi-
Skilled Minimally
Skilled Total
Nizamabad 124 23 28 176 78 33 -6 105
Adilabad 119 5 -57 67 63 6 -96 -27
Karimnagar 189 122 365 676 116 155 432 703
Warangal 120 40 54 214 65 39 34 138
Khammam 157 24 -4 177 93 30 -44 79
Nalgonda 152 61 134 346 84 60 106 250
Kurnool 138 45 63 246 70 39 22 131
Mahbubnagar 140 181 557 877 87 205 664 956
Rangareddy 326 -3 -316 7 180 -12 -394 -227
Hyderabad 298 51 -188 162 168 49 -142 75
Medak 219 33 -21 231 132 43 -69 106
Negative incremental demand in districts is largely due to fall in demand in agriculture sector
28 Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2013 NSDC. All Rights Reserved.
Estimated Workforce Availability…………………..(6/6)
Incremental Workforce Availability from 2012 till 2021-22: 73.71 Lakh
2016-17 2021-2022
29 Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2013 NSDC. All Rights Reserved.
Incremental Skill Gap: 2012-17
Skilled
Semi -Skilled
Minimally Skilled
41.41 L
11.61 L
9.75 L
2.85 L
2.25 L
32.86 L
38.55 L
9.35 L
-23.11 L
Incremental
demand for Human
Resources 2012-17
Incremental
supply of Human
Resources 2012-
17
Deficit of Human
Resources
2012-17
Incremental demand for 2012-2017: 62.77 L
Incremental supply for 2012-2017: 37.97 L
30 Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2013 NSDC. All Rights Reserved.
Incremental Skill Gap: 2017-22
Skilled
Semi -Skilled
Minimally Skilled
23.74 L
13.86 L
10.04 L
1.24 L
3.82 L
30.67 L
22.50 L
10.04 L
-20.63 L
Incremental
demand for Human
Resources 2017-22
Incremental
supply of Human
Resources 2017-
22
Deficit of Human
Resources
2017-22
Incremental demand for 2017-2022: 47.64 L
Incremental supply for 2017-2022: 35.74 L
31 Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2013 NSDC. All Rights Reserved.
Agenda
Objectives of the Study 3
Methodology 5
State Profile 8
Education & Skill Development 14
Estimation of Skill Gap 22
Aspiration of Youth 31
Challenges in the skill development eco-system 35
Recommendations 38
32 Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2013 NSDC. All Rights Reserved.
Parameters considered by youth while opting for vocational
training
Assessment ofoverall skill
Utility ofvocational
training received
Satisfaction withVT instituitions inproviding skills
Access to VTinstituitions inown district
Capability of VTinstituition's
faculty inteaching skills
Availability oflatest
technologies andequipment for
VT
Satisfaction withmonetary returns
received
Need for furtheradvance training
6.8 6.95 7.3
7.9
7.2 7
6.44 6.06
• Above are the ten important parameters considered by State’s youth before opting for vocational training
• Students did find the vocational training provided useful, although they expected an improvement in
curriculum and more practical training for better industry relevance.
• As per the youth, the vocational training institutes were accessible in terms of reach and awareness.
Although, youth seem to be unaware about the financing options available.
• Large section of the youth surveyed expressed their desire for up-skilling.
Fig: Rating on current vocational training provided by youth
Scale:10
33 Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2013 NSDC. All Rights Reserved.
Preferences of courses by youth
• As per REEMAP survey of ~25 Lakh students, above mentioned 10 courses are most preferred by the youth.
• Accounting & finance being the highest preferred, followed by IT sector courses.
• Labor intensive courses were least preferred by youth even though the industry requirement is high.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1st preference 2nd preference 3rd preference
290 266 226
166 186 267
157
186 161
140
74 65 114
119 130 92
53 42 87 71 69 84 72 74 81 46 44 72 76 79 65 57 46
Teaching
Others
Health Care
Textiles
Office Assistant
Electrician
Driving
Data Entry
Computer Assistant
BPO
Accounting and Finance
Source: REEMAP, Figure in ‘000s
34 Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2013 NSDC. All Rights Reserved.
Youth aspirations – mismatch between industry demand and
aspirations
• Sectors like transportation, food processing, mining & quarrying requires considerable manpower
and state would need to encourage partners and youth in these sectors
• The requirement has been reducing for automobiles , but it remains a preferred choice among youth
*Source: Accenture analysis
35 Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2013 NSDC. All Rights Reserved.
Agenda
Objectives of the Study 3
Methodology 5
State Profile 8
Education & Skill Development 14
Estimation of Skill Gap 22
Aspiration of Youth 31
Challenges in the skill development eco-system 35
Recommendations 38
36 Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2013 NSDC. All Rights Reserved.
Challenges in the skill development eco-system (1/2)
Infrastructure :
• Low quality of training due to poor infrastructure.
• Inadequate exposure to modern tools, techniques and processes.
Placement:
• No standard source to gather information on availability of jobs. There is a need for company related database at ITI level.
• Lack of industry linkages result poor placements.
Faculty
• Presence of contract faculty affects the quality of teaching and also it is seen that there is high attrition among them.
• Lack of quality trainer due to low aspirations and salary.
• Currently no minimum qualification and industry work experience criteria
Course Content:
• Low collaboration between industry and ITIs has resulted in poor industry readiness of the students passing out.
• Currently the students also lack in required basic computer skills and soft skills for various jobs.
37 Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2013 NSDC. All Rights Reserved.
Challenges in the skill development eco-system (2/2)
Vacancies – Unemployment- high level of Attrition
Youth Aspirations :
• Overwhelming preference to IT/ITES
• Mobilization & retention – a major effort
• Undue preference to white collar jobs has resulted in excess of skilled labor.
Employment Issues
• Low wages: Employers currently don’t match students’ salary and job expectations.
• High attrition preventing employers to invest on employee’s skill development.
Mismatch in the ecosystem between opportunities and aspirations
• 75% of candidates are from rural areas and >75% jobs are in urban areas.
• Low aspirations for manufacturing and construction sector jobs.
38 Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2013 NSDC. All Rights Reserved.
Agenda
Objectives of the Study 3
Methodology 5
State Profile 8
Education & Skill Development 14
Estimation of Skill Gap 22
Aspiration of Youth 31
Challenges in the skill development eco-system 35
Recommendations 38
39 Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2013 NSDC. All Rights Reserved.
Recommendations
INCREASE TRAINING CAPACITY
INTRODUCE MARKET ORIENTED COURSES
IMPROVE QUALITY OF TRAINERS
INCREASE INVESTMENT IN MENTORING/ COUNSELING
REDUCE TRAINING DROP-OUT RATE
INCREASE RETENTION RATE
DESIRED GOALS…
REEMAP (STATE SKILL NODAL
AGENCY)
NSDC
TRADE ASSOCIATIONS
DEPARTMENTS (DEMAND-SIDE) MSME; COMM & IT;
INDUSTRIES; RD
DEPARTMENTS (SUPPLY-SIDE)
SCIENCE & TECH; RD; EDUCATION
BENEFICIARIES/ YOUTH
INDUSTRIES TRAINING PROVIDERS
KEY PLAYERS
• REEMAP to institutionalize the State Skill Development Plan by collaborating with other key enablers like
NSDC, industrial associations, and relevant departments of the state
• This skill development plan would impact the youth by interventions planned by training providers and
participation of industries
40 Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2013 NSDC. All Rights Reserved.
Recommendations- Government of Andhra Pradesh
• Project Management Team would include a committee with quality
management assistance (operations) and subject matter expert teams
(Knowledge Agency) under it.
• At the operational level, the Management Agency would be
supported by district-level teams & Technical Agency in monitoring
and capacity-building activities.
• Sector Specific Committees to be established with collaboration with
Sector Skill Councils and NSDC, industries and institutions to facilitate
focused skill development preferably for industry clusters.
• Each industry cluster will have a Skill Development Centre which
will be managed by a council of members representing key
stakeholders.
• District Implementation Unit under the district magistrate or collector to
monitor the skill development training programs under various
departments
• The representation of Industry Associations for industry linkages for
better practical training, exposure and placement.
• Youth Skill Development Centre to mobilize & Capacity Building &
Promotion team at the district to promote the skill development schemes
Recommended structure of the State Skill
Development Plan
41 Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2013 NSDC. All Rights Reserved.
Recommendations- Government of Andhra Pradesh
Strengthening e-governance and improving the
database
• Restructure employment exchanges to career centres
providing career counseling and placement .
• Online Database: as a point of reference for the
stakeholders regarding the existing infrastructure across
different trades.
• Improve Employability by matching available skills
with industry requirements. This would essentially
serve as a transparent platform to search for jobs,
match profiles, and provide the state an estimate of
the potential job market.
• Integrated virtual labor market to integrate efforts of
employers, job seekers, public agencies such as REEMAP,
employment exchanges, state rural livelihoods mission
(SRLM) job portals such as monster.com and naukri.com,
and even local firms
42 Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2013 NSDC. All Rights Reserved.
Recommendations- Government of Andhra Pradesh
Creation of better infrastructure
• REEMAP to anchor the skill development initiatives through following activities:
• Partner with NSDC to attract private players to establish training centres in the state through PPP mode
• Performance Ratings - Create infrastructure for information asymmetry; publicize rating and outcome information for training
institutions.
• Practical Exposures & Orientations - Create infrastructure for on-the-job training; encourage apprenticeships
• Infrastructure for effective assessment and credible certification
• Training of trainers to enhance quality, introduce minimum education qualification and relevant industry work experience
criteria.
• Convergence strategies: Employment exchange-related initiative to change the role of the employment exchange from that of
a controller to that of a market facilitator of employment generation.
• Training employment officers in customer-facing functions
• Establishing more career centres (offering assessment, apprenticeships, counseling, jobs and training)
• Giving incentives to employment officers for open positions that lead to closures of vacancies,
• Incentivizing employment exchange for clearing backlog
• Publishing employment exchange-wise annual calendar of job fairs,
• Ensuring easy access to candidate pool by creating a digital format of candidate profiles.
43 Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2013 NSDC. All Rights Reserved.
Recommendations- Industry
Public Private Partnership with NSDC, Government & Training providers
• To achieve the goal of the creation of best and skilled workforce in Andhra Pradesh, it is very important that the industry and
the future employers work in tandem with the government and training providers. With the increase in the investment
pattern in the state, workforce engagement should increase manifold through following:
• Regular interactions should be done with educational institution.
• Industries could also play a proactive role in setting course curriculum (in line with current industry or market
requirements).
• The curriculum of syllabus should be updated as per industry specific requirements.
• Skill development initiatives should be more employers driven and the Government should be involved only on policy.
• Employers can develop their own Skill training schemes. Prioritize design and drive sectoral training.
• There should be awareness about government schemes and to coordinate accordingly for a public private
partnership to engage more and more number of youth for employment.
• Align with the apex body NSDC and state mission for integration with the skilling programmes.
• Institutionalization of more proactive industry involvement in key actions of training institutes such as ITIs.
• Key industries such as Construction, IT/ITES, Hospitality should promote on-the-job training.
• Industry should share their upcoming manpower requirements with the Government units and training partners
regularly.
44 Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2013 NSDC. All Rights Reserved.
Recommendations- Industry
Industries and the State Sector Skill Committees
• All key players in each sector should actively support the activities of SSCs in Andhra Pradesh through the following:
• Industry should promote in setting up of Sector Skill Council by partnering in Train the trainers programme.
• Prefer SSC accredited training agencies and certified trainees.
• Pay more to certified persons and incentivize the employee to pay for his training, for example, pay one month’s
salary to the skill/training institution; and or pay an amount equivalent to the money spent on training to the employee
after a specified period with the company;
• Promote continuous learning forums/activities and get all employees in the organization certified; and
• Encourage and incentivize suppliers, contractors and service providers to hire certified persons and make it a
condition to partner.
• Formation of state sector skill councils by approaching NSDC with suitable proposals (related to skilling
infrastructure, capacity and certification) for industry clusters.
• Share information with the Sector skill Councils to develop robust Vocational Education System programme.
45 Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2013 NSDC. All Rights Reserved.
Recommendations- NSDC
Action Plan
Bra
nd
ing
, C
om
mu
nic
ati
on
an
d
Aw
are
ne
ss
bu
ild
ing
En
ab
ler b
etw
een
G
ove
rnm
en
t, In
du
stry
an
d
Tra
inin
g p
rovid
ers
Focus Sectors with workforce
requirements
Employer driven engagement with
private players
Focus Districts:
Encourage private players to open skill development centres in
the districts with high workforce availability:
• Mahbubnagar, Guntur, Kurnool, Rangareddy, East Godavari,
Anantapur, Visakhapatnam, Karimnagar, Krishna
Sector Skill Councils:
Engage the existing and the future SSCs in the state’s skilling
plan and anchor certain initiatives envisaged.
Introduction & implementation of National Occupational
Standards (NOS).
SSCs can engage industry in skill assessment and
certification in coordination with the nodal industry association
of the state.
Building long-term capability of existing clusters:
• Long term plans can be made for the clusters by including the
best practices of Public Private Partnerships, better
infrastructure availability, identifying the key Workforce
requirement, through better research studies. It can approve
cluster based projects.
• Revamp the employment exchange with the help of the Sector
Skill Councils.
46 Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2013 NSDC. All Rights Reserved.
Recommendations- Training Providers
Action Plan
Imp
rove
th
e q
ua
lity
of
tra
inin
g f
or
tra
ine
rs
Wo
rk in
syn
c w
ith
ind
us
tries
Focus on shared education service
Focus on practical orientation
Skilled: • Focus sectors could be construction, IT, Pharmaceuticals,
Biotech, hospitality, textile, research and development
activities, exchange of information etc.
• Need for specialized skill development initiatives to be taken up
by the state through training partners.
Semi-Skilled: • Largest share of target segment in skill scope for the state.
• Sectors : retail, services, and ancillary industry base in
manufacturing etc.
• Scope of engaging the workforce with up-skilling in IT/ITES
Minimally Skilled: • Basic and advanced training should be imparted phase wise. Focus
sectors shall be construction, agriculture, tourism, repair servicing
etc.
• Trades like mason, plumber, mobile repairs, fitters, housekeeping,
telephone operators, catering, guide training, carpenter, basic
welding, procurement etc.
• Includes contractual employment opportunities and training for wage
schemes.
• Basic training could be done through the employment generation
mission
• Advanced training could be at district levels post some experience
and hands-on work.
47 Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2013 NSDC. All Rights Reserved.
Focus sectors for Vocational training providers
Sector Priority Key Districts Key Skills
Construction High Vishakhapatnam, Guntur, East
Godavari, Chittoor, Krishna
Mason, Welder, Mechanical & Electrical Maintenance, Quality
Control Lab Technicians, Operators .
Tourism Travel &
Hospitality
High Rangareddy, Nalgonda,
Karimnagar, Khammam
Inter-state tour operations, Orientation to foreigners (Global
adjustment), Ticketing, Logistics management, Pricing,
Customer Relationship Management,
Banking &
Insurance
High Hyderabad, Rangareddy,
Vishakhapatnam, East Godavari
Sales & marketing of banking and insurance products, retail
banking, Financial agents in Insurance & NBFC companies
IT/ITES Medium Nellore, Hyderabad, East
Godavari, Vishakhapatnam,
Chittoor
Focus on communication –spoken and written, Focus on
behavioral courses to improve team building, stress
management and time management
Transportation,
Logistics,
Warehousing
Medium Hyderabad, Krishna,
Vishakhapatnam, Rangareddy,
Adilabad
Driver, Maintenance Operator, Crane Operator, Store
Supervisors, Loader, Un-loader, Packaging Supervisor,
Technology Officer
Textile & Leather Medium Nellore, Vishakhapatnam,
Vizianagaram, Guntur
Weaving, Processing, Maintenance, Quality testing, Cutting &
Sewing, Embroidery & Needle work
Chemicals &
Pharmaceuticals
Medium Rangareddy, Medak, East
Godavari, Nalgonda,
Sales and marketing, production, lab assistants, testing
assistants
Auto & Auto
component
Medium Rangareddy, Chtittoor, Krishna,
Srikakulam
Manufacturing & operations, Repair & Service Mechanics, Shop
floor managers
Food processing Medium Nizamabad, Vishakhapatnam,
Medak, Rangareddy
Quality Testing, Packaging, Bar coding, Labeling, Lab
Technicians, Raw Procurement, Sales and Marketing