Why in news?
An opinion piece argued that India’s vast young population could become a liability if the country fails to create jobs and impart relevant skills. The article warned that automation and outdated education could turn the demographic dividend into a demographic crisis.
What is the demographic dividend?
When the share of working‑age people is high relative to dependants (children and the elderly), countries can enjoy faster economic growth. With more than 800 million Indians under 35, this window of opportunity remains open until about 2045.
Potential benefits
- Economic boost: A productive workforce can raise GDP and household incomes. Closing the gender gap in labour force participation could add more than 25 % to India’s GDP.
- Global workforce: India could supply skilled workers to ageing economies worldwide, bringing in remittances and strengthening foreign ties.
- Innovation and competitiveness: Young entrepreneurs can drive innovation and make Indian goods and services competitive globally.
- Social progress: With more working adults, there is scope to invest in education, healthcare and infrastructure, improving living standards.
Challenges
- Skill gaps: Only about four in ten graduates are considered “job ready”. Many engineering and arts graduates struggle to find employment.
- Automation: Technological advances threaten to displace low‑skill jobs. Studies suggest that up to 70 % of current jobs could be at risk by 2030.
- Low female participation: Women’s labour force participation hovers around 37–42 %, reducing the potential workforce.
- Limited career awareness: Students and parents often know little about emerging careers beyond a handful of professions.
Consequences if challenges are not addressed
- Unemployment and unrest: A large number of educated yet unemployable youth could lead to frustration, social unrest and crime.
- Missed opportunity: India might fail to replicate the economic miracles achieved by countries like China and South Korea during their demographic windows.
- Brain drain: Talented individuals may migrate abroad if domestic opportunities are lacking.
Solutions
- Overhaul curricula: Integrate digital literacy, problem‑solving and soft skills into school and university programmes.
- National skilling mission: Expand vocational training, apprenticeships and reskilling schemes, with special focus on women and rural youth.
- Women‑centric policies: Provide safe transport, childcare facilities and flexible work arrangements to encourage women’s participation.
- Career guidance: Offer counselling in schools and colleges about diverse career paths, including vocational and entrepreneurial options.
- Public–private partnerships: Collaborate with industry to design courses that meet market needs and offer on‑the‑job training.
Conclusion
India is at a crossroads. Harnessing the demographic dividend requires urgent action on education, skilling and gender equity. If policies keep pace with technological change and create inclusive opportunities, the country can reap immense rewards. Otherwise, a large youthful population without prospects could become a source of instability.