District Level Skill Gap Study for Andhra Pradesh. Final Presentation

District Level Skill Gap Study for Andhra Pradesh Final Presentation

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 2

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 4

Methodology (1/2) Primary Research Primary- Interview schedules with youths, industries, VTIs Quantitative Tools Skill Gap Study- District wise Secondarydata 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, indepth interviews Analysis of preliminary findings, case studies etc. Key Stakeholders VTIs, Colleges Industries & Associations (CII support); Labour Unions; District key officials Youths Secondary Research 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 Skill development planning 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. 6

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. Activity Employer Survey 420 Vocational Training Institutions Survey Total Sample Size 237 Youth Survey 1384 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 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 7

Demography & Development Index Andhra Demographic Indicators 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 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 8 People below Poverty Line (%) 21.10 29.80 Industrial Infrastructure 2013 2013 9 PPP projects (No) 100 881 10 SEZs (No) 76 385 9

Economic Profile - State State GSDP at Constant (2004-05) Prices Sector level contribution to GSDP (INR crore) Andhra Pradesh India Source: Mospi Agriculture Sector Industry Sector Services Sector 9.57% 11.18% 12.02% 9.96% 171640 185047 204846 224927 9.48% 9.57% 9.32% 6.88% 6.72% 5.98% 8.39% 8.40% 6.81% 6.88% 113812 126379 54557 60042 59789 60966 142183 83883 89238 70611 71563 72108 73509 97465 104614 79631 78408 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 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. 10

Economic Profile - State Exports break-up, Andhra Pradesh (2011-12) Break up of outstanding investments by sectors (2012-13) Software (IT & ITeS) 10% 18% 4% 7% 4% 23% 34% Engineering items Drugs & pharma and chemical plastics Agro-based and forest products Leather, animal and marine products Mineral & mineral products 12% 12% 19% 4% 25% 28% Electricity Manufacturing Services Irrigation Real Estate Mining Source: Andhra Pradesh Socio-Economic Survey 2012-13 Source: Andhra Pradesh Socio-Economic Survey 2012-13 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 agrobased 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). 11

Economic Profile: New Investments Industries (Investment :INR 2010-11 2011-12 2012-13 million) 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 140 120 100 80 60 40 20 0 Source: CMIE 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 12

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 Source: MSME-Development Institute -AP Pneumatic Hammers 13

Snapshot of Literacy in the State Literacy (in 2011) Overall Literacy Rate (in %) Male Literacy Rate (in %) Andhra Pradesh India 67.66% 74.04% 75.56% 82.14% 99.5 116 Gross enrollement ratio Andhra Pradesh India 80.1 85.5 92 104.3 Female Literacy Rate (in %) 59.74% 65.46% Urban Literacy 80.54% 84.98% Rural Literacy 61.14% 68.91% Classes I - V (6-10 years) Classes VI - VIII (11-13 yrs) Classes I - VIII (6-13 years) 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. 15

Education Infrastructure 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 Flash Statistics 2010-11 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. Source: Annual Status of Education Report 2012 (ASER), Pratham Maximum drop outs in upper primary and higher secondary was observed; which resulted less intake in colleges 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 16

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 Source: Provisional Census 2011 Composition of Graduates in A.P B.Com 36% B.A, 24% B.Sc. 40% Total Graduates in 2010-11 : 3,38,907 Large number of infrastructure for technical and science related courses present in the state Large number of science graduates and engineers in the State Composition of Post Graduates in A.P MCA 10% MBA 11% M.Com. 14% M.A. 19% M.Sc. 46% Total Post Graduates in 2010-11 : 26,224 Source: Provisional Census 2011 Source: Provisional Census 2011 17

State Skill Development Initiatives: Rajiv Yuva Kiranalu mission Implementation through PPP model Online portal for registration of candidate & monitoring Post Placement Service tracking Communication and awareness generation campaigns Target: Skill 14 lakh Youth by 2014 Estimated Budget of INR 1700 crore INR 777 crore for implementation in 2012-13 Total 566 centres operational Cover 25 sectors with 328 courses being delivered Training of district team Total 4,18,229 studnents placed 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 22 nd December 2013,RYK placements and centres report on www.ryk.cgg.gov.in 18

Sub Missions of the state scheme Sub Missions Labour Employment and Training Mission for Elimination of Poverty in Urban Slums (MEPMA) Employment Generation and Marketing Mission (EGMM) Area of responsibility Responsible for identification, training and employment of unemployed urban youth passing out from Industrial Training Institutes in the state Responsible for training and employment of unemployed youth that belong to SHG families of urban slums Responsible for identification, training and employment of unemployed youth in rural areas with special focus on the SHG households Technical Education Department (TED) Disabled Welfare Department (DWD) Minority Welfare Department (MWD) Hyderabad Sub-mission 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 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. Responsible for mobilization, training and employment of Minorities in the State except Hyderabad District. 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. 19

Other Vocational Training Providers Government Training Providers Number of institutions* Trades Covered ITIs 105 Electronics,Fitter, Draughtsman Civil ITCs 670 Welder, Hospital attendants Women 25 Dress Making, Computer Operator, Mechanic 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 20

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. 21

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. 23

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 24

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 25

District wise Incremental Workforce Requirement.(4/6) Skill Gap (in '000s) 2012-2017 2017-2022 Total Skilled Semi- Skilled Skilled Semi-Skilled Minimally 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. 26

District wise Incremental Workforce Requirement. (5/6) Skill Gap (in '000s) 2012-2017 2017-2022 Total Skilled Semi- Skilled Skilled Semi-Skilled Minimally 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 27

Estimated Workforce Availability..(6/6) 2016-17 2021-2022 Incremental Workforce Availability from 2012 till 2021-22: 73.71 Lakh 28

Incremental Skill Gap: 2012-17 Incremental demand for Human Resources 2012-17 Incremental supply of Human Resources 2012-17 Deficit of Human Resources 2012-17 41.41 L Skilled 2.85 L 38.55 L 11.61 L Semi -Skilled 2.25 L 9.35 L 9.75 L Minimally Skilled 32.86 L -23.11 L Incremental demand for 2012-2017: 62.77 L Incremental supply for 2012-2017: 37.97 L 29

Incremental Skill Gap: 2017-22 Incremental demand for Human Resources 2017-22 Incremental supply of Human Resources 2017-22 Deficit of Human Resources 2017-22 23.74 L Skilled 1.24 L 22.50 L 13.86 L Semi -Skilled 3.82 L 10.04 L 10.04 L Minimally Skilled 30.67 L -20.63 L Incremental demand for 2017-2022: 47.64 L Incremental supply for 2017-2022: 35.74 L 30

Parameters considered by youth while opting for vocational training 6.8 6.95 7.3 7.9 7.2 7 6.44 6.06 Scale:10 Assessment of overall skill Utility of vocational training received Satisfaction with VT instituitions in providing skills Access to VT instituitions in own district Fig: Rating on current vocational training provided by youth Capability of VT instituition's faculty in teaching skills Availability of latest technologies and equipment for VT Satisfaction with monetary returns received Need for further advance training 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. 32

Preferences of courses by youth 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 65 57 46 72 76 79 81 46 44 84 72 74 87 71 69 53 42 92 119 130 114 74 65 140 186 161 157 166 186 267 290 266 226 1st preference 2nd preference 3rd preference Teaching Others Health Care Textiles Office Assistant Electrician Driving Data Entry Computer Assistant BPO Accounting and Finance Source: REEMAP, Figure in 000s 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. 33

Youth aspirations mismatch between industry demand and aspirations *Source: Accenture analysis 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 34

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. 36

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. 37

Recommendations DEPARTMENTS (SUPPLY-SIDE) SCIENCE & TECH; RD; EDUCATION REEMAP (STATE SKILL NODAL AGENCY) DESIRED GOALS INCREASE TRAINING CAPACITY INTRODUCE MARKET ORIENTED COURSES BENEFICIARIES/ YOUTH IMPROVE QUALITY OF TRAINERS DEPARTMENTS (DEMAND-SIDE) MSME; COMM & IT; INDUSTRIES; RD TRAINING PROVIDERS KEY PLAYERS INDUSTRIES NSDC INCREASE INVESTMENT IN MENTORING/ COUNSELING REDUCE TRAINING DROP-OUT RATE INCREASE RETENTION RATE TRADE ASSOCIATIONS 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 39

Recommendations- Government of Andhra Pradesh Recommended structure of the State Skill Development Plan 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 40

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 41

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. 42

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. 43

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. 44

Branding, Communication and Awareness building Recommendations- NSDC Focus Sectors with workforce requirements 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. Action Plan Employer driven engagement with private players Enabler between Government, Industry and Training providers 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. 45

Improve the quality of training for trainers Recommendations- Training Providers Focus on shared education service 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. Action Plan Focus on practical orientation Work in sync with industries 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. 46

Focus sectors for Vocational training providers Sector Priority Key Districts Key Skills Construction High Vishakhapatnam, Guntur, East Godavari, Chittoor, Krishna Tourism Travel & Hospitality Banking & Insurance High High Rangareddy, Nalgonda, Karimnagar, Khammam Hyderabad, Rangareddy, Vishakhapatnam, East Godavari IT/ITES Medium Nellore, Hyderabad, East Godavari, Vishakhapatnam, Chittoor Transportation, Logistics, Warehousing Medium Hyderabad, Krishna, Vishakhapatnam, Rangareddy, Adilabad Textile & Leather Medium Nellore, Vishakhapatnam, Vizianagaram, Guntur Chemicals & Pharmaceuticals Auto & Auto component Medium Medium Rangareddy, Medak, East Godavari, Nalgonda, Rangareddy, Chtittoor, Krishna, Srikakulam Food processing Medium Nizamabad, Vishakhapatnam, Medak, Rangareddy Mason, Welder, Mechanical & Electrical Maintenance, Quality Control Lab Technicians, Operators. Inter-state tour operations, Orientation to foreigners (Global adjustment), Ticketing, Logistics management, Pricing, Customer Relationship Management, Sales & marketing of banking and insurance products, retail banking, Financial agents in Insurance & NBFC companies Focus on communication spoken and written, Focus on behavioral courses to improve team building, stress management and time management Driver, Maintenance Operator, Crane Operator, Store Supervisors, Loader, Un-loader, Packaging Supervisor, Technology Officer Weaving, Processing, Maintenance, Quality testing, Cutting & Sewing, Embroidery & Needle work Sales and marketing, production, lab assistants, testing assistants Manufacturing & operations, Repair & Service Mechanics, Shop floor managers Quality Testing, Packaging, Bar coding, Labeling, Lab Technicians, Raw Procurement, Sales and Marketing 47