Sambhav-2025

Approach In introduction highlight their interrelation in the Indian context. Explain the potential of India's demographic dividend for inclusive growth. Discuss challenges, highlight the role of education and skill development. Conclude suitably.

Introduction

India's demographic dividend, with around 67% of its population in the working-age group (15-64 years), presents an unparalleled opportunity for economic acceleration. Inclusive growth, which ensures equitable distribution of resources and opportunities across all demographics, can harness this dividend effectively. However, realizing this potential depends heavily on addressing skill gaps and creating avenues for productive employment.

Body

Potential of India’s Demographic Dividend for Inclusive Growth:

• Economic Growth and Productivity: A large workforce can contribute to higher GDP growth by increasing productivity across sectors.
  • Example: Industries like IT and pharmaceuticals leverage young talent to expand exports and drive innovation.
• Improved Labour Force Participation Rate (LFPR):Acco rding to the Periodic Labour Force Survey (PLFS) Quarterly Bulletin (July–September 2024):
  • LFPR in urban areas among persons aged 15+ increased from 49.3% in 2023 to 50.4% in 2024.
  • LFPR for females improved from 24.0% in 2023 to 25.5% in 2024, signaling gradual inclusion of women in the workforce.
• Rising Worker Population Ratio (WPR): WPR in urban areas increased from 46.0% in 2023 to 47.2% in 2024, reflecting better utilization of the workforce.

Challenges in Realizing the Potential:

• Unemployment and Skill Mismatch: Despite the decline in the unemployment rate (from 6.6% in 2023 to 6.4% in 2024, as per PLFS), skill mismatches remain a barrier to meaningful employment.
  • Women still face an unemployment rate of 8.4%, highlighting gender disparity.
• Regional and Social Inequalities: Rural and urban disparities, coupled with challenges in economically lagging states like Bihar and Uttar Pradesh, hinder balanced growth.
• Gender Disparity: Despite improved LFPR and WPR, women’s participation in the workforce remains disproportionately low, requiring sustained efforts.

Role of Education and Skill Development in Harnessing the Dividend:

• Universal Access to Quality Education: Programs like Samagra Shiksha Abhiyan aim to improve foundational skills and ensure literacy and numeracy for all.
  • Vocational education under the NEP 2020 prepares students for industry-relevant roles.
• Industry-Aligned Skill Development: Initiatives such as Skill India Mission and PM Kaushal Vikas Yojana (PMKVY) have trained millions in areas like IT, construction, and healthcare.
  • Example: PMKVY has trained over 15 million individuals, ensuring alignment with market needs.
• Women-Centric Skill Development:
  Programs like Support to Training and Employment Programme (STEP) focus on empowering women through skill-building.
  • Increased LFPR for women (from 24.0% in 2023 to 25.5% in 2024) underscores the importance of such interventions.
• Digital and STEM Education: Promoting digital literacy and STEM education ensures employability in high-demand global sectors like IT and data science.
• Lifelong Learning and Upskilling: Platforms like SWAYAM and partnerships with global institutions provide avenues for continuous learning, ensuring adaptability to technological changes.

Conclusion

India’s demographic dividend offers immense potential to drive inclusive and sustainable growth, provided the right investments are made in education, skill development, and gender empowerment. The Periodic Labour Force Survey data (2024) reflects progress in workforce participation, but challenges like unemployment, skill mismatches, and gender disparities persist. A targeted and inclusive approach, integrating education and employment policies, is essential to ensure that this demographic advantage transforms into a long-term economic boon.