Demographic dividend may turn into liability
India is expected to add another 183 mn people to the working age group of 15-64 years during 2020-50 in the absence of enough jobs and the required skilled workforce: Report
image for illustrative purpose
CII suggestions
• Creation of industry-ready model, to transform to demand-based skill system
• Govt to set up multi skill training institutes in MSME clusters to impart skills
• Govt, corporate investment in employee education and training high-skilled workers
• Offer skill vouchers and scholarships to youth for national skill qualification framework
New Delhi: As the country is expected to add another 183 million people to the working age group of 15-64 years between 2020-50, its demographic dividend may turn into a liability in the absence of enough jobs and the required skilled workforce, a report released on Sunday said.
The report on India's Demographic Dividend released by industry body CII argues that not only is there a shortage of time, but also that the rise in India's working age population is necessary but not sufficient for it to sustain the economic growth. "If India does not create enough jobs and its workers are not adequately prepared for those jobs, its demographic dividend may turn into a liability. And education and skill development will be the biggest enablers for reaping this dividend," the report said. The report points out that India will add another 183 million people to the working age group of 15-64 years between 2020-50, as per the UN Population Statistics database. Thus, a whopping 22 per cent of the incremental global workforce over the next three decades will come from India. "Although investment, reforms and infrastructure are likely drivers of India's economic growth, no growth driver is as certain as the availability of people in India's working age group. India's young population, its demographic dividend, gives India the potential to become a global production hub as well as a large consumer of goods and services," highlighted Chandrajit Banerjee, Director General, CII. However, India does not have much time to utilise this dividend, cautions the report. "While we are likely to add 101 million people in the working age population between 2020-30, this number will reduce to 61 million and then to 21 million for 2030-40 and 2040-50, respectively. It is expected that India's working age population will start declining in the decade post 2050," it said.
To overcome such challenges, the report suggests that youth may be offered skill vouchers and scholarships which can be linked to the national skill qualification framework. This can create an industry-ready model, thus leading to a transformation from supply-based to demand-based skill system. The government should also consider setting up multi skill training institutes in MSME clusters to impart skills based on local demand, it suggested.
