- As per Jobs for Resilience, South Asia Development Update” released by world bank, South Asia region including India is not reaping its demographic dividend.
- Demographic dividend is increased economic growth potential that can result when share of working-age population (15 to 64) is larger than non-working-age.
- India is expected to enjoy this window for 37 years starting 2018 and up to 2055.
- Issues in harnessing demographic dividends
- Jobless growth: Employment ratio (employment relative to total working-age population) is only 59% (2023) in South Asian countries, lower than other emerging economies (~70%).
- Exceptionally low shares of women in employment
- Weak employment trends in non-agricultural sectors
- Private investment has slowed and growth is mainly driven by public investment
- Slowing global growth and heightened risks
- Jobless growth: Employment ratio (employment relative to total working-age population) is only 59% (2023) in South Asian countries, lower than other emerging economies (~70%).
- Recommendations
- Greater openness to international trade by reducing barriers to trade.
- Development of flexible labour laws and efficient land markets
- Investment in Infrastructure with a focus on transportation and agricultural sectors
- Improving Female labor force participation by wage subsidies, tax benefits etc.
- Improved human capital for easy switching of employment from agriculture to non-agriculture.