DMPQ: what do you understand by the term demographic dividend? This dividend is fast becoming liability. Discuss?

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Demographic dividend means that as compared to other large developing and developed countries, India Has a higher proportion of working age population as compared to entire population. More than 50% of India’s population is in the age group of 15-59 years. With such a young population. It

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has a huge demographic dividend waiting to be capitalised. But unfortunately we haven’t been able to harness this capital.

According to a mckinsey study, 51% of this working age population i.e. mpre than 350 million people require some form of vocational/skill based training in order to make them more employable.

Reasons:

  • Lack of training institutes and vocational training centres.
  • Graduates passing from the colleges are not skilled enough to do a job. They are not able to match up the expectations of the industry.
  • Industrial revolution 4.O, Artificial intelligence and robotics – their negative effect is low creation of human job.
  • Currently most of the country is on the path of protectionism. Because of this they are averse to outsourcing and migrants. For example H1B issue,nitaqat law
  • Poor performance of Manufacturing sector.

 

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