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.
|Total Factor Productivity
|*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.
|Availability of specialized training services
|Extent of staff training
|Labor market efficiency
|Efficient use of talent
|Pay and productivity
|Country capacity to retain talent
|Country capacity to attract talent from abroad
|Financial market development
|Venture capital availability
|Capacity for innovation
|Availability of scientists and engineers
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: