India's Youth, Demographic Boon Or Bane?

    • Agencies
    • Publish Date: Feb 22 2017 7:07PM
    • |
    • Updated Date: Feb 23 2017 10:53AM
India's Youth, Demographic Boon Or Bane?

According to the latest census around 41 percent of India's population is below the age of 20 years. But without job creation on a war footing, our demographic dividend can turn into a liability.

In another twenty years more than a billion people will be more than 65. The greying population will largely be in the developed world. The old people to working age population will get severely skewed in many countries. According to The Economist, by 2035 Japan will have 69 old people for every 100 in the 24-65 age group. Germany will have 66 and America will have 44.

Educated but unemployable
The source of labour will have to come from Asia and Africa which will in 2035 have 22 people over 65 for every hundred who are in the 24-65 age group. While we keep flaunting India’s demographic dividend we conveniently ignore the dropping rates of employability with passing year.

Less than one out of four MBAs is employable. One out of five engineers can claim to be employable. Only one in ten graduates is employable. 

Lethal combination 
A demographic dividend is very unlikely to accrue to India anytime soon, as a large share of the country's youth lacks education as well as jobs to deliver this productivity, says a report. Economic theory suggests that when the proportion of young people in a region increases, a significant boost to economic growth should happen. However, in case of India this is not likely to meterialise, Ambit Capital said in a research note.

This is mainly because a large share of India's youth today lacks education and jobs to deliver this productivity. To add to the imbalance, the country's gender ratio is skewed significantly in favour of men.

Despite the rapid economic advancement India experienced over the nineties, its progress on the social indicators front has been appalling. 
Whilst only six countries today have economies that are larger than that of India's, the country is at the bottom of the league tables on social indicators with only 58 countries having an HDI rank worse than that of India's, the report said. 

A long road ahead
The government has initiated several measures to promote ‘skilling’, but it will take several years before tangible results are achieved. The government can act as a catalyst, but the main drive for skilling must come from the private sector.

Do you think that India’s youth is facing an uncertain future? Register to post your comments now. 


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Comments

Himanshi Dhawan Saffron Public School

A fountain of youth resides in Young Hindustaan or Youngistaan. So, what can''t a country achieve which has a youth population equivalent to the combined population of Russia, Indonesia and Pakistan? But, something is there to obstruct us - lack of jobs. It is excruciatingly depressing that this asset is on the verge of turning into a liability. It''s high time now! Jobs need to be created in various sectors to open doors of a bright future for the Indian youth.

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