A Demographic Dividend happens when fertility and mortality rates fall and the nation’s economic growth rises as a result. There will be fewer mouths to feed and an increase in life expectancy as a result of falling fertility and mortality rates. As a result, fewer people will need to receive education and training, which will lead to an increase in the number of productive workers. It automatically boosts the nation’s economy.

With new rural broadband networks that will link isolated communities with educational possibilities, the government is seeking to increase access to education and vocational training for workers in rural areas.

Demographic Dividend of India as an asset

As the number of dependents declines, people can save more money. This causes the stock capital of developing countries to rise. fewer children mean lower financial strains at home. Better health and education are the outcomes. As a result, the labor force will be more productive. Additionally, when the population declines, so does the standard of living.

The population of working age will rise by roughly 600 million globally during the next ten years, according to the UN. By 2020, the number of skilled workers is projected to fall by approximately 17 million in developing nations, but by 56 million in the global economy as a whole. So, with the proper education and training, Indian workers will succeed both domestically and internationally.

The Demographic Dividend of India as a liability

Lack of opportunity for the expanding young population will lead to increased crime and antisocial behavior. Furthermore, practical knowledge and skills are not being taught in the current educational system. Increasing the trained workforce faces greater challenges.

Healthcare facilities and social security for the elderly will pose a hurdle to increased life expectancy.

By providing specialized training to the vulnerable and needy in society, the government should invest more in education, skill development, and employment. A funded element can be added to pension plans to reform them, increasing individual contributions and providing a capital payment upon retirement.

The working-age population needs to be encouraged to save by offering various incentives, such as tax breaks, higher returns, etc.

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