Answer

India stands at a critical juncture where its demographic dividend , with over 65% of the population under 35 years and a median age of 29.5 years (2024) which offers immense potential for economic transformation. However, this opportunity is finite and demands urgent structural preparedness.

Key Challenges in Reaping India’s Demographic Dividend

• High Youth Unemployment: Millions of youth enter the workforce annually, but job creation remains sluggish.
  Eg. The youth unemployment rate (15–29 years) stood at nearly 14% in 2025, reflecting a growing mismatch between skills and market demand.
• Skill–Industry Mismatch: Formal skilling remains limited among the working-age population.
  Eg. According to PLFS 2022-23, only 4.4% of individuals aged 15–29 have received formal vocational training, hindering employability in emerging sectors.
• Low Formal Sector Absorption: A majority of the workforce remains in low-productivity sectors like agriculture.
  Eg. Despite employing over 55% of the workforce, agriculture contributes just 18% to India’s Gross Domestic Product (GDP).
• Rural–Urban Infrastructure Divide: Inadequate urban infrastructure hampers internal migration and employment absorption.
  Eg. Cities face chronic shortages in affordable housing, sanitation, and public transport, especially with rising rural-to-urban migration.
• Low Female Labour Participation: Women’s contribution to the workforce remains significantly below global standards.
  Eg. India’s  Female Labour Force Participation (FLFP)for FY 23  was 37%(2023), far below the global average of around 47%.
• High NEET Proportion: Many youth remain Not in Employment, Education, or Training (NEET), especially young women.
  Eg. Nearly 24% of Indian youth are NEETs , with a disproportionately high 38% among young women in 2023.
• Shrinking Window of Opportunity: The demographic dividend will peak by 2047, after which the dependency ratio may worsen.
  Eg. India’s Total Fertility Rate (TFR) has fallen to 1.98, indicating an ageing future population and reduced demographic advantage.

Measures to Harness India’s Demographic Dividend

• Promote Labour-Intensive Sectors: Target sectors like textiles, manufacturing, and tourism for mass employment.
  Eg. The Production Linked Incentive (PLI) scheme in electronics created over 1.3 lakh jobs by 2024.
• Expand Vocational Training: Strengthen programs like Skill India and state-level training initiatives.
  Eg. The TechBee programme in Jharkhand trains school graduates in skills like coding, AI, and data analytics.
• Reform Education for Employability: Integrate vocational education from an early stage under policy mandates.
  Eg. The National Education Policy (NEP) 2020 introduces skill-based education from Class 6 onwards to bridge the employability gap.
• Boost Female Workforce Participation: Enhance safety, provide flexible work policies, and introduce gender-sensitive employment schemes.
  Eg. Enabling measures could raise FLFP above 50%, enhancing both social equity and economic productivity.
• Strengthen Urban Infrastructure: Scale urban employment schemes, housing, and transport for sustainable growth.
  Eg. Schemes like AMRUT (Atal Mission for Rejuvenation and Urban Transformation) and Pradhan Mantri Awaas Yojana address infrastructure deficits.
• Support Migrant Labour Integration: Ensure social protection, portability of benefits, and city-specific skill mapping.
  Eg. The National Career Service (NCS) portal helps match migrant youth with urban jobs based on qualifications.
• Foster Youth Entrepreneurship: Promote startups through incubation, credit, and mentoring.
  Eg. Initiatives like Startup India, Make in India, and Stand-Up India are nurturing youth-led businesses and self-employment avenues.

India’s demographic dividend offers a unique development opportunity, but only if backed by timely and inclusive policy action. Focused investments in education, skill development, job creation, gender inclusion, and urban infrastructure are essential to transform this demographic edge into a resilient and inclusive Visit Bharat @2047.

DOWNLOAD PDF