Inclusive India 2047: Empowering the Demographic Dividend

Inclusive India 2047: Empowering the Demographic Dividend

The Economic Survey 2018-19 stated that India’s demographic dividend would peak around 2041, when the share of working-age, i.e., 20-59 years (lesser band), population is expected to hit 59%.

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The Economic Survey 2018-19 stated that India’s demographic dividend would peak around 2041, when the share of working-age, i.e., 20-59 years (lesser band), population is expected to hit 59%The Economic Survey 2018-19 stated that India’s demographic dividend would peak around 2041, when the share of working-age, i.e., 20-59 years (lesser band), population is expected to hit 59%
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Business Today Desk
  • Aug 24, 2023,
  • Updated Aug 24, 2023 11:25 AM IST

India has gained the distinction of being the most populous country in the world, as per the UNFPA’s State of World Population Report 2023. However, the most interesting part of the report is - the working population of India, which includes the 15-64 age group, comprises 68% of the total population. This scenario highlights the potential of India reaping the demographic dividend in the years to come.

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By 2020, India had one of the youngest populations in an aging world, with a median age of just 28, compared to 37 in China and the US, 45 in Western Europe, and 49 in Japan. India is expected to enjoy the demographic dividend window for 37 years starting 2018 and up to 2055. However, this window is available at different times in different states because of the differential behaviour of the population parameters.

The Economic Survey 2018-19 stated that India’s demographic dividend would peak around 2041, when the share of working-age, i.e., 20-59 years (lesser band), population is expected to hit 59%.

Simply put, with more people in the labour force and fewer children to support, India has a window of opportunity for achieving higher economic growth. Harnessing this dividend requires expanding opportunities for young people to engage in the economic sector, guided through the right social and economic investments and policies made in health, education, governance, and the economy, in tune with the demographic transition.

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Ensuring the overall social well-being of people is a prerequisite for accomplishing a decent level of demographic dividend. Building social infrastructure, including education, skilling, public health and nutrition, and drinking water and sanitation, will lead to a more productive and proficient workforce, healthy growth of children, increased mobility to fulfil emotional needs and higher quality of life.

Immediate challenges for deriving a demographic dividend include growth in the working age ratio being concentrated in some of the poorest states in India, while the employability of youth is an important factor in deriving benefits from the demographic dividend. Mismatch in skillsets availability and industry-specific needs, and low human development parameters are reflecting the need to improve quality health and education infrastructure to make the Indian workforce efficient and skilled.

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Current trends such as the informal nature of the economy in India, and jobless growth being witnessed over the last two decades due to the advent of technologies like Industry-4.0, and cornering of some industrial activities and de-globalization, are also evoking concerns over the Indian job market, leading to higher unemployment levels.

Focus on inclusive and accessible education, with particular focus on disadvantaged sections including handicapped and women, promoting vocational training and skill development, fostering industry-academia collaboration to identify and fill skill gaps, and promoting research and innovation, besides creating a robust education system that prepares individuals for the evolving job market, can help overcome these challenges.

To address these drawbacks in education, skill development, and job creation, the government has initiated several programmes/ schemes, including Sarva Shiksha Abhiyan, Rashtriya Madhyamik Shiksha Abhiyan, National Skill Development Mission, under which programmes like Skill India, Pradhan Mantri Kaushal Vikas Yojana (PMKVY), and National Apprenticeship Promotion Scheme (NAPS), Atal Innovation Mission, National Education Policy (NEP) 2020, Startup India, National Research Foundation, and Digital India campaign.

Though industrial activity and trade are getting back to near normalcy after Covid-19 related pangs, job scenario seen in pre-Covid era is unlikely to return. So, promoting entrepreneurship and business interests, which will in turn create more jobs, will be a better alternative to address the growing unemployment, along with the teeming millions joining the workforce every year. Entrepreneurship seems to be a great leveller affording an equal opportunity to all, regardless of educational qualification, caste, gender, disabilities, age etc. However, empowering them and creating a supporting ecosystem is necessary for them to flourish.

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The financial inclusion initiatives that were introduced in 2005 with the aim of ensuring access to financial products and services needed by vulnerable groups, has spread its tentacles far and wide. With linkages mandated through JAM (short for Jan Dhan-Aadhaar-Mobile linkage) trinity aimed to plug the leakages of government subsidies later, it has reached every nook and corner of the country.

The Financial Inclusion Index launched by RBI a couple of years back to measure penetration of financial accessibility, has improved to 56.4 in 2022, from 53.9 in 2021.

India cannot afford to miss the golden opportunity afforded by demographic transition that provides for its rapid socio-economic development that too coming at a time it is preparing for 100th year of its independence in 2047. And we must succeed at any cost, by learning from countries such as Japan and Korea which have passed through this phase earlier, and charting a clear course in the light of the domestic complexities, for reaping greater benefits of the demographic dividend.

BT India @100: Decoding the Megatrends for Mission 2047. All the updates

India has gained the distinction of being the most populous country in the world, as per the UNFPA’s State of World Population Report 2023. However, the most interesting part of the report is - the working population of India, which includes the 15-64 age group, comprises 68% of the total population. This scenario highlights the potential of India reaping the demographic dividend in the years to come.

Advertisement

By 2020, India had one of the youngest populations in an aging world, with a median age of just 28, compared to 37 in China and the US, 45 in Western Europe, and 49 in Japan. India is expected to enjoy the demographic dividend window for 37 years starting 2018 and up to 2055. However, this window is available at different times in different states because of the differential behaviour of the population parameters.

The Economic Survey 2018-19 stated that India’s demographic dividend would peak around 2041, when the share of working-age, i.e., 20-59 years (lesser band), population is expected to hit 59%.

Simply put, with more people in the labour force and fewer children to support, India has a window of opportunity for achieving higher economic growth. Harnessing this dividend requires expanding opportunities for young people to engage in the economic sector, guided through the right social and economic investments and policies made in health, education, governance, and the economy, in tune with the demographic transition.

Advertisement

Ensuring the overall social well-being of people is a prerequisite for accomplishing a decent level of demographic dividend. Building social infrastructure, including education, skilling, public health and nutrition, and drinking water and sanitation, will lead to a more productive and proficient workforce, healthy growth of children, increased mobility to fulfil emotional needs and higher quality of life.

Immediate challenges for deriving a demographic dividend include growth in the working age ratio being concentrated in some of the poorest states in India, while the employability of youth is an important factor in deriving benefits from the demographic dividend. Mismatch in skillsets availability and industry-specific needs, and low human development parameters are reflecting the need to improve quality health and education infrastructure to make the Indian workforce efficient and skilled.

Advertisement

Current trends such as the informal nature of the economy in India, and jobless growth being witnessed over the last two decades due to the advent of technologies like Industry-4.0, and cornering of some industrial activities and de-globalization, are also evoking concerns over the Indian job market, leading to higher unemployment levels.

Focus on inclusive and accessible education, with particular focus on disadvantaged sections including handicapped and women, promoting vocational training and skill development, fostering industry-academia collaboration to identify and fill skill gaps, and promoting research and innovation, besides creating a robust education system that prepares individuals for the evolving job market, can help overcome these challenges.

To address these drawbacks in education, skill development, and job creation, the government has initiated several programmes/ schemes, including Sarva Shiksha Abhiyan, Rashtriya Madhyamik Shiksha Abhiyan, National Skill Development Mission, under which programmes like Skill India, Pradhan Mantri Kaushal Vikas Yojana (PMKVY), and National Apprenticeship Promotion Scheme (NAPS), Atal Innovation Mission, National Education Policy (NEP) 2020, Startup India, National Research Foundation, and Digital India campaign.

Though industrial activity and trade are getting back to near normalcy after Covid-19 related pangs, job scenario seen in pre-Covid era is unlikely to return. So, promoting entrepreneurship and business interests, which will in turn create more jobs, will be a better alternative to address the growing unemployment, along with the teeming millions joining the workforce every year. Entrepreneurship seems to be a great leveller affording an equal opportunity to all, regardless of educational qualification, caste, gender, disabilities, age etc. However, empowering them and creating a supporting ecosystem is necessary for them to flourish.

Advertisement

The financial inclusion initiatives that were introduced in 2005 with the aim of ensuring access to financial products and services needed by vulnerable groups, has spread its tentacles far and wide. With linkages mandated through JAM (short for Jan Dhan-Aadhaar-Mobile linkage) trinity aimed to plug the leakages of government subsidies later, it has reached every nook and corner of the country.

The Financial Inclusion Index launched by RBI a couple of years back to measure penetration of financial accessibility, has improved to 56.4 in 2022, from 53.9 in 2021.

India cannot afford to miss the golden opportunity afforded by demographic transition that provides for its rapid socio-economic development that too coming at a time it is preparing for 100th year of its independence in 2047. And we must succeed at any cost, by learning from countries such as Japan and Korea which have passed through this phase earlier, and charting a clear course in the light of the domestic complexities, for reaping greater benefits of the demographic dividend.

BT India @100: Decoding the Megatrends for Mission 2047. All the updates

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