Demographic dividend fizzling out: Experts

Need to improve employability of working-age people

- PRASANTA SAHU

INDIA'S MUCH-TOUTED demographic dividend was best to be reaped by the early part of the second decade of the millennium, but it failed to efficiently use the opportunity. There is still a window left for the country to take residual benefit of its youthful demography, before it closes in another two decades.

India is set to become the most populous country by overtaking China by mid-2023, the United Nations Population Fund said in its latest report on world population. Economists who FE spoke to said the country has to fix its structural issues fast, accelerate investment in health & education to improve the employability of its workforce. In parallel, land and labour reforms must be taken forward to boost the country's manufacturing competitiveness so that the potential of the sector to create millions of jobs could be tapped.

Like in the services sector, the Central government and state governments will have to take steps to accelerate manufacturing activity to harness the full potential of its relatively young population, experts said.

While India's population ages with the birth rate falling and longevity increasing, the next few years would be crucial to address structural issues that could accelerate India's economic growth.

"Every indication is that we are doing everything possible not to realise the demographic dividend when it should be the exact opposite. We are not generating jobs, or investing in health and education. If we are not doing these things, then our dividend will go unutilised. China did these and realised their dividend," said Santosh Mehrotra, Visiting Professor, Centre for Development Studies, University of Bath, UK.