CANDI 18 AUGUST 2021
Rising India youth population
GS 1 – Indian Society
According to various international studies, the median age in India would be 28
years by 2022-23, in contrast to 37 in China and 45 in western Europe.
This is an enormous growth opportunity as India will have the highest
number of people in the workforce.
In other words, India’s non-working population would be outnumbered
by the working population, leading to a favourable demographic
The demographic dividend or the economic growth is brought by a change
in the structure of a country’s population.
This leads to an increase in the labour force and, in turn, more people are
working and being productive.
This accelerates urbanisation and the growth of industries. Also, as the
purchasing power of the populace increases, it opens up a bigger
domestic market (which is already sizable in the case of India), thus
attracting more investment and increasing opportunities.
Taking these factors into account, the Centre for Economics and Business
Research (CEBR) predicts that despite the pandemic, India will become the
third largest economy in the world by 2030.
As per the United Nations Population Fund (UNFPA), the demographic dividend
is the economic growth potential resulting out of changing population age structure
with a large section of people in the working-age group of 15 years to 64 years as
compared to the non-working age population of below 14 years and above 65 years.
Demographic Dividend – Causes
Change in population structure occur due to
- Falling birth rate
- Lower fertility rate
- Increased longevity
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Falling birth rate and lower fertility rate will contribute to a reduction in
expenditure, increased longevity will lead to an increase in the size of the workingage population.
Demographic Dividend – Opportunities for India
- India will have the youngest workforce in the world with a median age
much lower than China and other Developed countries.
- The other countries will have a higher proportion of the population which is
not in the working-age group which will result in a shortage of manpower to
the tune of 56 million.
- Indian workforce can fill this gap in India and abroad and result in
greater economic growth.
- During the period of demographic dividend, the personal savings will grow,
which means greater purchasing power, which can lead to the growth of the
Demographic Divided – Challenges facing India
- Skill development of the working-age population so that they can turn
out to be productive for the country’s economy. By 2031, the overall size of
our vast working-age population would have declined in 11 of the 22 major
States. While Kerala’s population is already aging, in Bihar the working-age
cohort is predicted to continue increasing till 2051.
- Rate of employability among Indian graduates is on the lower side.
- As per UNDP report, India ranks very poorly in the Human Development
- The mean years of schooling and expected years of schooling are very low in
- Unemployment rates are high in rural and urban India.
- A huge percentage of the population is still dependent on agriculture in India,
this segment is also known for underemployment and disguised
- A huge majority of the workforce is employed in the unorganized sector which
is riddled with low wages and the absence of social security.
- Fall in female labour force participation in India, as per reports from
International Labour Organisation (ILO) and World Bank. Growing female
literacy is not translating into relevant and marketable skills. Lack of flexible
entry and exit policies for women into virtual classrooms, and into modules
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for open digital training, and vocational education limits access to
Demographic Dividend is very important. Historically demographic dividend has
contributed upto 15% of the overall growth in advanced economies.
Demographic Dividend helps in increasing the workforce, there will be rapid
urbanisation and industrialisation. It leads to more investment in physical
and human infrastructure. The productivity of the country’s economy increases
due to increased labour force. Demographic Dividend will help in witnessing a
massive shift towards middle-class society.
Source: THE HINDU
How start-up ecosystem can help India become
powerhouse of global economy?
GS 3 – Economy
With 62% of the population in the working age group and 54% below the age
of 25, India has the advantage of leveraging the skill and ability of our youth
to drive the nation forward through productive output and innovation.
More in News
While India has historically and culturally been an entrepreneuriallydriven nation, the last decade-and-a-half has witnessed a significant
change in the landscape- from the founding of new startups, to global
investor interest, to the advances made in infrastructure and policies.
In 2021 alone, Indian startups have so far raised upward of $20 billion in
funding, achieved unicorn statuses, and more.
The proliferation of this startup economy has brought with it new business
opportunities, innovation, tech-centric approaches and job creation across
While the flow of investments from traditional industries into tech-focused
sectors has been instrumental for entrepreneurs, India’s own growing tech
prowess has had an inspirational journey in the last few decades.
From 2011, when India’s first private company achieved unicorn status, to
being on track to have a 50-plus strong “Unicorn club” in 2021 according to
Nasscom, the country now finds itself at the epicentre of entrepreneurship.
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How Startups Help India?
A mature startup ecosystem, with seasoned entrepreneurs and technologyled solutions, paves the way for innovation and expanding its global
While value creation lies at the centre of entrepreneurship, Indian startups
are also taking big strides in building synergies and partnerships with
global entities, further demonstrating the evolution of the startup
ecosystem and its appetite for innovation, collaboration and disruption.
Even amid the Covid-19 pandemic, Indian startups have rapidly innovated
to provide indigenous, tech-enabled solutions to combat challenges from
testing kits and ventilators to remote monitoring, and preventive
technologies, as well as innovations in supply chain management, logistics,
Today, India is home to more than 40,000 startups and is building a
robust tech and internet infrastructure.
Moreover, the ability of the young generation to take risks, move fast, and
disrupt things without fear, has become our biggest asset today.
From industrial conglomerates, banks, automobile giants, software pioneers
to tech startups, India has been steadily scripting its growth story. Global
investors too are realising the potential upside in India’s huge, underpenetrated market as the country steadily makes a place for itself as a
leading R&D hub for many Silicon Valley companies.
However, in order to transition beyond the current capabilities and achieve
the demographic dividend, education, and reskilling, and upskilling of our
workforce is crucial.
Apart from the domestic policy environment, the global environment and
technological advances are also changing, and it is imperative that India is
prepared for this revolution.
Apart from policy-level decisions that promote entrepreneurship, the onus is
also on India’s corporate sector to foster entrepreneurialism, and create
synergies to build impactful technology solutions, sustainable and resourceefficient growth.
How India become powerhouse of the global economy?
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With Indians set to make up one-fifth of the world’s working-age population
in the next five years and likely to have an estimated 850 million internet
users by 2030, the country stands at the cusp of unprecedented economic
growth, and the opportunity to be a global game-changer.
Speed, inclusion, and sustainability are key elements in this mission, as is
the youth of the country.
Coupled with the nation’s focus on strengthening digital infrastructure in
healthcare and education, and boosting employment in manufacturing, there
is little doubt that India@100 will be a powerhouse of the global economy.
The collective future efforts of the public and private sectors to improve
physical and digital connectivity will also help unlock the untapped potential
of rural and semi-urban India to truly lead Industry 4.0 and beyond.
In view of achieving this transformation at scale, the Indian startup
ecosystem must focus on developing solutions that allow businesses in key
sectors to meet goals of national importance.
CONNECTING DOTS FOR PRELIMS
Startup India is an initiative of the Government of India. The
campaign was first announced by Indian Prime Minister, Narendra
Modi during his speech in 15 August 2015 address from the Red
Fort, in New Delhi.
The event was inaugurated on 16 January 2016
The action plan of this initiative is focussing on three areas:
o Simplification and Handholding.
o Funding Support and Incentives.
o Industry-Academia Partnership and Incubation.
A startup defined as an entity that is headquartered in India, which
was opened less than 10 years ago, and has an annual turnover less
than ₹100 crore.
Under this initiative, the government has already launched the IMADE program, to help Indian entrepreneurs build 10 lakh (1
million) mobile app start-ups, and the MUDRA Bank’s scheme
(Pradhan Mantri Mudra Yojana), an initiative which aims to provide
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micro-finance, low-interest rate loans to entrepreneurs from low
Source: INDIAN EXPRESS