It is pivotal for India to incorporate its vast young population into a sector that graciously embraces human services, writes Tejasvini Akhawat

Demographic dividend, as defined by the United Nations Population Fund (UNFPA), means, “the economic growth potential that can result from shifts in a population’s age structure, mainly when the share of the working-age population (15 to 64) is larger than the non-working-age share of the population (14 and younger, and 65 and older)”. In India, 65 per cent of its population is in the working age of 15-59. Every nation has its own agenda of development and, for India, it can very well be its demographic dividend, which is both vibrant and capable. Each country must attempt to gain from its specialty, and history has it that developed nations have trodden this path. For instance, Japan fell short on human resources and evolved indigenous technology to successfully replace human effort. Even Germany, though technologically advanced, in its present situation is altering its national policies, much to the dislike of many nations to look out for people from foreign lands. It is doing so to make up for the demand of human labour that can contribute successfully to its prosperity.

In the same way, India has to devise suitable methods of development that give priority to its skilled and unskilled workforce and ensures that its population does not suffer the wrath of technology. Technology in Indian milieu should be used to an extent where it is making human labour simpler rather than eradicating the human effort altogether. Thus, India needs to strike a balance between keeping the population rightly employed and progressing at the same time. This easier said than done, will make the development holistic in nature as the nation shall fare better on many of the human development indices rather than just presenting dry numbers of growth and income. Utilising the demographic dividend will ensure that the growth is equitable, the income is for all, and the output per person is not wasted.

India can capitalise on its human assets and discover ways that fulfil the dual objectives of employment and development. The three sectors of economy are for all nations, however, to cherry-pick them is up to a nation’s requirements. For example, China adopted the manufacturing sector model, and a developed country like Australia primarily remains an agrarian economy. Despite being faced with derision from the so-called first world nations, these countries had lucid objectives and were definite of the approach they were adopting. These nations progressed by retaining their modus operandi. India can also bait on its lush demographic dividend and troll them enormously to make the economy tertiary in nature. The proposal appears to be appalling at first; however, it will definitely acquit itself if given a fair chance to thrive with political will and societal encouragement. The service sectors like IT industry, tourism, banking sector can be massively expanded to boast India’s exports. It, thus, becomes extremely pivotal for India to transform its bane into boon by incorporating its vast young population into a sector that graciously embraces human services.

Time is a crucial factor in this demographic situation of India. After 25-30 years, the demographic dividend will eventually begin to decline. This gives India a deadline of three decades to enjoy the status of being the country with the largest young workforce in the entire world. Foregoing this opportunity will not result in anything but loss. It will be such an embarrassment if India is unable to tap the benefits from its human assets. Furthermore, this will result in setting a poor example at the international forums, jolting India’s dream of becoming a superpower. However, if this potential labour force can be harnessed, then India shall not only rise momentously, but also escape the many ill-effects that come with huge unemployed population pressure. Providing them with livelihood possibilities will lead to eradication of poverty, better living standards, and performance on human development index, increased per capita and national income. According to the International Monetary Fund report, in the coming 20 years, India’s demographic dividend could add about two percentage points per annum to its per capita GDP growth. The boom in demographic dividend also means higher participation of women in workforce and labour market, thereby generating a balance in gender structure and leading to women empowerment.

The strain to handle the expansive demographic dividend should not always be perceived as a difficult conundrum. It can fetch India international recognition for the right reasons. Although various countries of Asia and Latin America are experiencing the demographic dividend as well, economic giants such as Japan and China are not in a position to exploit them. Japan has an ageing population due to low mortality rates, high life expectancy, and low birth rates. China’s one child policy has resulted in the stress of ageing population with fewer youths to look after them, leading to a high dependency ratio. Apart from them, developed economies such as the Nordic nations, Germany, Russia, Japan, among others are all in dire need of manpower, which presents India a golden opportunity to gain enormously and abundantly by rising amongst the ageing economies. For this to materialise, a giant leap needs to be taken to convert India from a land of job-seekers to job-gainers.

Utilising the demographic dividend is anyway the last resort or else they will metamorphose into a burden. India, for the moment, has to embrace the fact that it has one of the largest workforces in the world and thus, should strive towards turning them into an advantage. If not taken care of in time, the unemployed and unproductive labour force will sooner or later gravitate on the nation and haunt it in various facets for many decades to come. Hence, it is better if India voluntarily and dedicatedly takes up the issue to find innovative and pioneering solutions to tackle the situation.

A higher number of working population means more productivity and reduced liability for the Government. So long as the young workforce is rightly employed, they can satisfy their own demands and attend to their secondary obligations on their own. Thus, empowering the youth to realise their full potential is a way forward, which will ensure that India takes the lead in the global supply of workforce. The presence of demographic dividend is thus a favourable situation if seized appropriately and can take India to inestimable heights.

The writer is a PG in International History from the Graduate Institute of International and Development Studies, Geneva, Switzerland, and is pursuing internship with the Speaker’s Research Initiative (SRI), Lok Sabha Secretariat, Parliament of India, Delhi