While we found India’s demographic dividend, we ignore the dropping rates of employability. What are we missing while doing so? Where will the jobs that India desperately needs come from? Explain.
India’s working age population, i.e. aged between 15-64 years, amounts to 63.4% of the total population. One of India’s advantages that must be exploited is its demographic dividend. However, this can be done only if the available workforce is skilled. Thus, even while working age population increases, their employability falls due to lack of capacity-building to develop a skilled workforce. The low rates of employability prevent us from reaping the benefits of our demographic dividend. Over the next two decades the continuing demographic dividend in India could add about two percentage points every year to India’s per capita GDP growth. However, for the working age population to exploit this advantage, it must possess the right skills that can make it a strong workforce. Hence, capacity development and skill development are two areas which need our focus.
An impetus to the manufacturing sector will take advantage of this unique advantage that India possesses. Labour intensive industries will also provide lucrative employment opportunities to the unemployed and the persons engaged in agriculture and other allied activities. India’s newly unveiled ‘Make in India’ campaign will push India to create more job opportunities. Other sectors which could create more jobs are the MSME sector and the tourism sector. A slew of reforms are expected to make functioning of MSMEs much easier. Also measures such as factory and labour reforms, disbursement of loans to SHGs through government programmes etc are expected to promote starting of new business ventures.