Published on February 27, 2014
How to create a million jobs in new state of Andhra A.S.RAO INDIAN INNOVATORS ASSOCIATION http://www.indiainvents.blogspot.in/ 1
UNEMPLOYMENT IN A.P Number of establishments in the organized sector - 19,591 by March, 2012. Out of these, 13,175 were in Public Sector and 6,416 were in Private Sector. 20.28 Lakh persons were employed in this organized Sector . The Public Sector alone accounted for 12.76 Lakh and the remaining 7.52 Lakh were employed in the Private Sector. There were 19,07,027 candidates on Live Register of Employment Exchanges at the end of October, 2012. 2
Rajiv Education and Employment Mission in Andhra Pradesh (REEMAP) About 892 training centres have been established directly in PPP mode. Trainings are given in 28 sectors and in about 100 courses. 22.29 lakh candidates were registered under RYK for placements, of which 2.75 lakh candidates got placements up to Feb 2013. At REEMAP, Hyderabad, registration for B.Tech Pass was 73,784 and placements 6,998 , a placement ratio of 9%. . 3
Existing employment opportunities In Hyderabad professionals constitute 35% of work force followed by another 35% engaged in trading and other services. In costal Andhra 38% of work force are agriculture labour , farming employs 20%, nonfarming& elementary work 13% and professionals in total employment restricted to 8%. . 4
Doing Business in India/A.P India is ranked 134 and Singapore no 1. For doing business in A.P-starting a business needs 33 days with 12 procedures, construction permit takes 80 days with 16 procedures, property registration takes 37 days with 5 procedures, 78 different payments to be made as taxes, enforcing a contract consumes 770 days and finally solving insolvency needs 7 years. In Singapore starting a business needs 2.5 days, construction permits 26days, registering property 5.5 days, 5 payments towards taxes, enforcing contracts 150 days and resolving insolvency 0.80 years. 5
SWOT analysis of new Andhra state Strengths: strong entrepreneurial culture, premium on education, women empowerment. Weakness: culture trait- Andhrulu Arambha Surulu. First to start and early to give up. Opportunity: TINA factor (There Is No Alternative) to create jobs locally. Threat: Competitive populism of political parties can easily push Andhra to BIMARU status. 6
Strategy to create a million jobs Prioritize, differentiate between important and urgent. Create a Business friendly smart state. Construct Digital Highway. Support self employed, MSME units with credit guarantees and start-ups with risk capital. 7
Prioritize with four baskets Urgent but not important: address employee problems arising out of division. Important but not urgent: declare 5 years moratorium on subsidies, freebies, loan write-offs Neither important nor urgent: starting state corporations based on those that existed in combined state. Important and urgent: usher a new culture of governance with room for initiatives by all stakeholders. 8
The Package ( which no outsider can airdrop) Adopt minimal form of governance, Benchmark Singapore for `ease of doing business’. Ensure lifeline of commercial credit and power to all MSME units. Create silicon valley of start-ups in all trading towns in partnership with NRIs. Develop consensus on postponing nonproductive expenditure at-least by 5 years. 9
Marshall Plan for emotionally battered Andhra Marshall plan is credited in economic recovery of Japan and Europe devastated after world war 11. Technical Assistance program is a key component that raised productivity of labour. Execution and Productivity will be critical in creating jobs in new state of Andhra. 10
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