Andhra Pradesh Priorities: Skills - Sunay Policy Advisory

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Skill Development
MansiArora,RajeshChakrabartiandKushalPrakash
SunayPolicyAdvisory
AndhraPradeshPrioritiesconference,Vijay...

Introduction
Analyzed
interventions
Conclusion
Structure of the presentation
Vocational Training
Apprenticeship
Providing ...

Introduction
High unemployment among
youth Companies facing difficulty to
recruit skilled workers
Paradoxical situation in...

More about the current state
2.4
1.4
1
0.1
0.4
3.1
2.3
1
-2.1
Skilled Partially skilled Unskilled
AP Skills deficit by pro...

Calculations
Many calculations in this paper are based on data from the Employment Unemployment
Survey (EUS) 2016
EUS was ...

First analyzed intervention
Vocational Training

Description of Vocational Training
Vocational training (VT) provides job-specific technical training, with hands-
on instr...

Cost categories:
The total cost of VT is found to be Rs. 43,818 per year per individual
Costs involved in implementing Voc...

Benefits from vocational training
Benefit shown as
Net Present value (NPV) of lifetime benefits is
calculated
Benefit from...

Total costs, total benefits and cost-benefit ratio
Discount rate
3% 5% 8%
Benefit
(1000 INR)
1,252.8 716.4 326.2
Cost (100...

Sensitivity analysis
Higher BCR can be realized if VT is undertaken at an early age
Sensitivity analysis is done to furthe...

Second analyzed intervention
Apprenticeship

Description of Apprenticeship Training
Apprenticeship training involves programs that combine vocational education with
wo...

Costs involved in Apprenticeship program
Cost categories
Total cost for one apprenticeship is estimated to be Rs. 1.86 lak...

Benefits from apprenticeship program
Benefits shown as:
Net Present value (NPV) of lifetime
benefits is calculated at diff...

Total costs, total benefits and cost-benefit ratio
Discount rate
3% 5% 8%
Benefit (lakh
INR)
20.4 13.38 8.06
Cost (lakh IN...

Third analyzed intervention
Support to SMEs

Description of SME support
Support to SMEs is provided through bank credits
Estimate of unmet credit demand for MSMEs in 2...

Costs involved in supporting SMEs
Cost categories
The cost of credit equals Rs.16 for every Rs.100 lent to SMEs
Cost of bo...

Benefits from supporting SMEs
Benefit calculation is based on a study by Banerjee and Duflo (2012)
The study estimates pro...

Total costs, total benefits and cost-benefit ratio
BCR of the intervention was found to be 5.6
Benefit from Rs.100
bank cr...

Conclusion
Two direct interventions on skill training and one intervention on
MSME is examined in this paper
16.3
7.2
5.6
...

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