In four years, India will enter a unique stage in its population growth where the majority of our citizens, working independently, will achieve the Demographic Dividend.
What is Demographics?
Demographics is the study and categorization of people based on factors such as income level, education, gender, race, age, and employment, just to name a few. Businesses use demographics to make key commercial decisions. For example, if demographic studies indicate towards an ageing population, a healthcare company might launch adult diapers. Governments use demographics to make key policy decisions. For example, the Indian government focuses on girl child education because demographic studies have pointed towards an imbalance in education among the male and female gender.
What is the Demographic Dividend?
The Demographic Dividend is the benefit received by a country during a population phase wherein –
- Fertility rates drop i.e. the number of babies born reduces drastically
- Work force population increases faster than dependent (baby) population
The effect of the early stage of the Demographic Dividend are –
- Increased per-capita income i.e. each person earns more
- Increased investment due to freed up resources i.e. people have more money to save up for retirement
Will India benefit from the Demographic Dividend?
Contrary to popular notion, India will not be able to reap the benefits of demographic dividend unless it fixes the following issues –
- High unemployment rates and losing to competition from Vietnam, China etc – The fix for this is better connectivity and infrastructure so that businesses can thrive and trade can happen as efficiently as it happens in other South-Asian countries
- Lack of skilled workforce – The fix for this is increased attention towards government policy and programs like “Skill India”, and primary education
These fixes will take a long time to implement. So, for the near future, India is looking at mass unrest and unemployment unless it magically overhauls its education and administrative systems.
