Answer
Demographic dividend refers to the economic growth potential that arises from a shift in a country’s age structure, typically when the working-age population (15–64 years) is larger than the non-working-age. As per UNFPA 2023, over 68% of India’s population falls in this category. Yet, without adequate employment and skill development, this advantage can devolve into a demographic disaster.
Demographic dividend can turn into demographic disaster without adequate employment in the context of India’s workforce readiness
- Lack of job-ready skills: A youthful population without the skills demanded by modern industries leads to rising unemployment, underemployment, and economic discontent.
- Rise in social unrest: Frustrated youth with degrees but no employment opportunities can fuel social instability, affecting national progress and cohesion.
For example: In 2023, large-scale protests erupted in Bihar and UP against changes in the railway recruitment process, highlighting job-related grievances among educated youth. - Underutilisation of potential: If the majority of the young population remains unengaged in productive work, it leads to a waste of demographic advantageand slows economic growth.
For example: Only 3.84% of Indian engineers are employable in software-related jobs at start-ups, as per the Aspiring Minds Employability Report, - Increased dependency ratio: A young but unemployed population increases the economic burden on the employed, straining public welfare and reducing household savings.
- Brain drain escalation: Skilled individuals, facing limited domestic opportunities, migrate abroad, causing a loss of talent and weakening India’s innovation capacity.
Way Ahead: Measures to transform demographic dividend into opportunity
- Curriculum-industry sync: Aligning academic curriculum with industry needsensures students gain market-relevant skills and boosts their employability.
- Promote experiential learning: Embedding problem-solving and real-world projects into education fosters critical thinking and prepares students for dynamic job roles.
- Strengthen vocational training: Expanding skill development programmes for non-academic youth can reduce unemployment and ensure inclusive workforce participation.
For example: The PMKVY (Pradhan Mantri Kaushal Vikas Yojana) trained over 1.3 crore youth across sectors like construction, retail, and IT till 2023. - Enhance digital infrastructure: Building online education and job access in rural areas can bridge the urban-rural employment divide.
For example: Under BharatNet, high-speed internet connectivity reached 2.14 lakh Gram Panchayats, enabling rural students to access digital skill platforms like SWAYAM. - Boost R&D investment: Increasing funds for research and innovation will foster high-tech job creation and sustain long-term economic growth.
For example: The National Research Foundation (NRF), with a planned outlay of ₹50,000 crore, aims to promote research in AI, climate, and advanced tech.
India stands at a demographic crossroads, a young population brimming with potential, yet hindered by skilling gaps, jobless growth, and a shrinking formal sector. To avert a demographic disaster, India must invest in industry-aligned education, upskilling, and entrepreneurship ecosystems that convert its vast human capital into productive economic assets.