Demographic Dividend


Demographic dividend implies a greater proportion of working age population population (15-60 years age) as compared to the sum of shares of children(0-14) and senile population(60+)
  • In four years, India will have the world’s largest population of working people
Prerequisites to reap DD:
  • better skills and education for employability
  • improved health for an improved human capital
  • job creation to absorb both men and women
Challenges in achieving DD:
  • In 2015, India added the fewest organised-sector jobs
  • The proportion of jobs in the unorganised sector is set to rise to 93% in 2017
  • Rural wages are at a decadal low, as agriculture, which accounts for 47% of jobs, contracted 0.2% in 2014-15, growing 1% in 2015-16
  • As many as 60% of those with jobs do not find employment for the entire year, indicating widespread ‘under-employment’ and temporary jobs
  • The formation of companies has slowed to 2009 levels, and existing companies are growing at 2%, the lowest in five years
  • Technological change is making labour partially or wholly redundant in a number of sectors, across the world
What needs to be done?
  • The nation needs to create ten million jobs per year to absorb the addition of young people into the workforce
  • Improved infrastructure, skill development, access to easy finance, reducing barriers to entrepreneurship and forums for mentorship of emerging entrepreneurs in partnership with corporates are some of measures
  • The current situation calls for more and better schools, especially in rural areas. It also calls for better transportation links between rural areas and regional urban hubs
  • The government must also ensure better quality of jobs with a focus on matching skill-sets and job opportunities
“….while the global economy is expected to witness a shortage of young population of around 56 million by 2020, India will be the only country with a youth surplus of 47 million.” In your opinion, what challenges does India face in optimally utilizing this demographic surplus for the development of the country? Critically examine. (200 Words)

India will be young in 2020, but there is unevenness in youthfulness. Due to the substantial fertility decline in the south during the last two decades, the south is ahead in the demographic transition compared to the north. Indian economy is based on domestic consumption unlike China or Japan.
Youth needs:
  1. Proper health measures
  2. Affordable & quality Education
  3. Skill development to contribute to economy.
  4. Livelihood opportunities

Challenges needs to be tackled:
  1. Currently India’s education system is well below global standards. RTE must be properly and qualitatively implemented with proper funding.
  2. Diploma, Degree and Certificates courses should focus more on skill development
  3. Promoting growth of micro, small, and medium enterprises (MSME) to facilitate long term employment to youth is vital.
  4. Promoting the domestic consumer base is of utmost importance. Then only the pace of quality employment generation will be sustainable.
  5. Structural reforms needed to remove bureaucratic hassles, swift project implementation, consolidation of the fiscal deficit, increase in FDI and insurance sector. But it should not hurt farmers and poor
  6. Multiplicity of labour laws and difficulty in their compliance has been an impediment to industrial development; these laws should be simplified and made contemporary to other nations laws.
  7. Skilling of rural youth need to refocused by National Skill Development program with inclusion of minorities so that necessity “reservations” in jobs decrease from root of society.
Good & Qualitative Governance can bring above mentioned changes. Politics & Radicalism in reforms will derail development. So all governments (Union and State/UTs) must comply with inclusive growth of country.



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