To obtain full benefits of demographic dividend, what should India do?

To obtain the full benefits of the demographic dividend, India must transform its large working-age population into productive human capital. The demographic dividend refers to the economic growth potential resulting from a shift in a population's age structure, where the share of the working-age population is larger than the non-working-age share. However, this dividend is not automatic; it requires that the workforce is educated, healthy, and, most critically, skilled [2]. India faces a significant skill deficit that hinders employability [2]. Consequently, the government has launched initiatives like the Skill India Mission and Pradhan Mantri Kaushal Vikas Yojana to enhance youth productivity and align them with labor market requirements [1]. While social security and health (reducing IMR) are important for welfare, skill development is the primary driver for converting the youth bulge into an economic asset [2].

Sources

1. [2] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 19: Population and Demographic Dividend > TACKLING SKILL DEFICIT THROUGH HUMAN CAPITAL > p. 574
2. [1] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 19: Population and Demographic Dividend > Measures to Overcome above Challenges > p. 573