Sambhav-2025

Approach Briefly define demographic dividend and its significance in the context of India. Highlight the strategies to utilize its demographic dividend. Discuss the role of education, skill development, and industrial policies in this context. Conclude Suitably.

Introduction

A demographic dividend occurs when a country experiences a period of accelerated economic growth due to a larger proportion of working-age individuals relative to dependents. India entered its demographic dividend window in 2005-06, which will last until 2055-56. However, this advantage can only be fully realized through strategic reforms in education, skill development, and industrial policies.

Body

Demographic Dividend and Unemployment Challenge

• Demographic Dividend:
  • According to the India Employment Report 2024, India's working population is projected to increase from 61% in 2011 to 64% in 2021, and further reach 65% by 2036, which offers a window of opportunity for economic growth.
• Unemployment Challange:
  • As per the Centre for Monitoring Indian Economy (CMIE), the rate of unemployment of India rose sharply to 9.2% in June 2024, from 7.0% in May 2024, making it the third highest in terms of the unemployment rate for a country among the G20 pool of economies.
  • In 2023-24, the agriculture sector employed 46% of the labour force at the all-India level while contributing 16% to the total value added.
    • This leads to an imbalance in terms of the variety of sectors that the population is employed in.

Strategies to reduce unemployment and foster inclusive growth

• Strengthening Education System
  • Universal Access to Quality Education: Expanding initiatives like Samagra Shiksha Abhiyan to ensure foundational learning.
  • Focus on STEM and Digital Literacy: Encouraging AI, coding, and data science education to meet industry demands.
    • Employability among engineering graduates stands over 60%, with only 45% meeting industry standards
  • Higher Education Reforms: Implementing National Education Policy (NEP) 2020 to enhance skill-based learning.
• Enhancing Skill Development
  • Industry-Academia Collaboration: India needs to focus on aligning skill training with industry demands, such as in sectors like renewable energy, IT, and healthcare.
    • National Skill Development Corporation (NSDC) has collaborated with over 1,700 training partners to upskill the workforce.
    • Scaling up Skill India Mission, PMKVY, and apprenticeship programs to bridge the employability gap.
  • Vocational and Entrepreneurship Training: Promoting ITI reforms, Startup India, and Standup India for self-employment.
    • The National Apprenticeship Promotion Scheme (NAPS) aims to provide 50 lakh apprenticeships by 2025, offering hands-on experience and making youth job-ready
  • Leveraging Digital Platforms: Expanding access to e-learning and online certification programs for lifelong learning.
• Industrial Policies for Job Creation
  • Labour-Intensive Manufacturing: Strengthening sectors like textiles, MSMEs, and construction for mass employment.
    • The Make in India initiative aims to increase the share of manufacturing in GDP from 16% to 25% by 2025.
  • Fostering Startups and Entrepreneurship: Startup India has led to the creation of 50,000+ startups as of 2021, contributing to job creation and innovation across sectors like e-commerce, fintech, and healthcare.
    • The Atmanirbhar Bharat initiative has helped grow the electronics manufacturing sector, which created over 2 million jobs between 2014-2020 (India Brand Equity Foundation, 2020).
• Fostering Inclusive Growth
  • Targeting Marginalized Groups: Programs should focus on empowering women, rural populations, and underprivileged communities to ensure inclusive growth.
    • Strengthen Jan Dhan Yojana, Digital India, and UPI ecosystem to empower informal workers.
  • Gender-Inclusive Workforce: Increasing female workforce participation through maternity benefits, flexible work policies, and financial literacy.
    • The Self-Help Group (SHG) movement has empowered over 10 million women (National Bank for Agriculture and Rural Development).
  • Fostering Rural Employment: Enhancing wage employment schemes for rural labor force absorption
    • MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act) has provided over 28.8 billion person-days of employment between 2006-2021, with an emphasis on rural employment generation and poverty alleviation.

Conclusion

India must take a holistic approach to harness its demographic dividend by focusing on quality education, vocational training, and industrial growth. By addressing the skills mismatch, promoting entrepreneurship, and ensuring inclusive policies, India can effectively reduce unemployment and ensure sustainable, inclusive growth.