Skill Development – Summary


India stands at a critical juncture with demographic dividend for next few decades, but not prepared enough to benefit from it. According to a recent research by World Economic Forum into changing job scenario across the world, flexible work hours and technology led innovations are key demographic and technological trends respectively. These major disruptions are bound to have significant impact on business models and consequently on skill development. The report predicts a net job loss of 5.1 million in next 5 years – a loss of 7.1 million jobs in administrative functions and gain of 2 million jobs in computer and related fields, mainly as data analysts and specialized salespersons.

Of the 48 crore strong workforce in India, only 48% is non-agricultural and contributes 83% of the output. India has less than 5% of its workforce trained in formal vocational skills compared to 60-90% in developed economies. There is a wide disparity between the production output of a formal worker and an informal worker – a formally skilled worker on average contributes 8 times as much as an informal sector worker to the economy. Thus, there is strong business case as well as socio-economic logic for massive skill development programs.

With 67% working age population and 62% labor force participation rate (LFPR), Andhra Pradesh is better placed than most other states in India to take advantage of the demographic dividend. Therefore, state government has created APSSDC (Andhra Pradesh State Skill Development Corporation) and tasked it with skilling 2 crore people by 2029. As on date, formal system of ITI’s and Polytechnics account for almost three quarter of total training capacity whereas the remaining fraction is taken care of by Jawahar Knowledge Centres and vocational junior colleges. Huge capacity additions in short term training programs and vocationalization of formal education would be required to achieve the aforementioned targets.

The strategy to achieve the above targets is built on following 6 pillars: -:
  • Creating state-of-art skill development campus, centers of excellence for all major thrust areas, Skill Parks and skill development centers.
  • Vocationalization of school education to make 100% students passing out of formal education system employable by 2029
  • Integrated institutional framework for faster decision making and effective resource utilization
  • Skilling 50% of the informal sector to increase the wage in informal sector
  • State wide campaign to raise importance, dignity and pay-offs of skilling
  • Quality assurance through standardization and high quality training of trainers.