Skill Development

Executive Summary

Vision 2029-Sector papers

Andhra Pradesh aspires to become one of the top three states in India on various socio-economic development indicators by 2022 and the best State in the country by 2029. The State wants to become one of the key globally preferred investment destinations by 2050. A key enabler of this vision will be a swift, large scale and quality transformation of the state into a highly skilled workforce and knowledge driven economy.

Productivity (2012-13) India Andhra Pradesh Productivity Benchmark*
Total Factor Productivity 0.141 0.115 0.174
Capital Productivity 0.462 0.239 0.587
Labour Productivity 10.02 7.71 16.45
*Productivity Benchmark: The best in India value

Rich literature exists on a strong positive correlation between education, skills, productivity and economic growth. In the current scenario (Exhibit 1), the State’s productivity is less than 50% of the best value in the country and 30-40% lesser than the national average. In order to mitigate the above, the State is working with its available resources to transform the productivity numbers of both capital and labour. Labour, available in abundance, if harnessed productively through skill development will become a demographic asset. To this end, the Government will leverage the comprehensive skill development framework for skilling/ re-skilling of labour force and developing high quality sector focused niche skills.

As per the Vision2029, the state aspires to achieve the following milestones in skilling:

  • Establish AP as the skill capital by 2019
  • Emerge among the top 10 global hubs for highly skilled manpower by 2029
  • Skilling 2 crore persons by 2029
  • 100% students passing out employable by 2029

The state has set a target of skilling two crore individuals by 2029.

Skilling as a means of transformation into a globally competitive economy

The Government of Andhra Pradesh, with the support of the WEF, administered the process of calculating GCI for the state. The overall GCI of Andhra Pradesh is 4.37 with a rank of 51. (As per the WEF report of 2015-16 , India has been ranked as 56th nation among 140 nations with 4.31 points). The GCI defines competitiveness as the set of institutions, policies, and factors that determine the level of productivity of a country. These components are grouped into 12 pillars of competitiveness. One of these pillars is Higher Education and training (Pillar No.5). Quality higher education and training is crucial for economies that want to move up the value chain beyond simple production processes and products. In particular, today’s globalizing economy requires countries to nurture pools of well-educated workers who are able to perform complex tasks and adapt rapidly to their changing environment and the evolving needs of the production system. The extent of staff training is also taken into consideration because of the importance of vocational and continuous on-the-job training—which is neglected in many economies—for ensuring a constant upgrading of workers’ skills. Andhra Pradesh fares a lot better than India on the training related indicators. However, it has to improve a lot if it has to match the globally better performing countries.

Indicators Andhra Pradesh India Best Performer
  Rank Value Rank Value Score Country
On-the-job training 78 3.92 56 4.18 6.14 Switzerland
Availability of specialized training services 92 3.84 68 4.17 6.55 Switzerland
Extent of staff training 64 3.99 48 4.18 5.74 Switzerland
Labor market efficiency 74 4.19 104 3.86 5.8 Switzerland
Efficient use of talent 104 3.52 120 3.17 5.71 Switzerland
Pay and productivity 45 4.26 48 4.25 5.53 Qatar
Country capacity to retain talent 42 3.85 40 3.89 5.85 Switzerland
Country capacity to attract talent from abroad 80 3.21 40 3.85 6.12 Switzerland
Financial market development 43 4.28 54 4.08 5.73 New Zealand
Venture capital availability 20 3.69 13 3.97 5.08 Qatar
Innovation 46 3.59 42 3.65 5.76 Switzerland
Capacity for innovation 33 4.57 51 4.18 6.01 Switzerland
Availability of scientists and engineers 29 4.69 50 4.22 6.06 Finland

The sector paper provides a skill development framework for Andhra Pradesh, linking the challenges in skilling in AP with strategic initiatives derived by deciding upon certain key themes and anchors. A schematic of the framework is provided below:


The Skill Development Milestones for Andhra Pradesh, as defined in the Vision 2029 document include: