India’s Demographic Dividend

Why in News: India’s youth bulge, once seen as a demographic dividend, is at risk of becoming a time bomb due to outdated education, low employability, and rising job disruption from AI and automation.

Introduction

  • Rabindranath Tagore said, “Don’t limit a child to your own learning, for she was born in another time.”
  • This resonates with India’s current context: the education system is outdated, curricula lag behind technological disruptions, and the gap between degrees and employability is widening.
  • With more than 800 million youth below 35, India’s much-celebrated demographic dividend risks turning into a demographic liability if urgent reforms are not undertaken.

The Promise of Demographic Dividend

  • Large youth base: India has one of the largest working-age populations globally.
  • Potential economic booster: If properly skilled, this workforce can accelerate growth, innovation, and competitiveness.
  • Global comparison: East Asian economies harnessed similar demographics to achieve rapid growth.

The Risk of Liability

  • Graduate glut without jobs: Millions of graduates every year remain unemployed or underemployed.
  • STEM not immune: Even among engineers, 40–50% remain unplaced in the last decade.
  • Employers’ complaint: Increasing difficulty in finding industry-ready talent despite surplus of degree holders.
  • Graduate Skills Index 2025: Only 43% of graduates job-ready.

Technology and the Future of Work

  • AI as the disruptor: McKinsey – nearly 70% of Indian jobs at risk by 2030; 30% of tasks could be fully automated.
  • Job churn: World Economic Forum – 170 million jobs may be created by 2030 but 92 million displaced.
  • Curriculum lag: Indian universities revise curricula every 3 years, but industry changes every few months → mismatch.

Early Stage Mismatch (High School Level)

  • Awareness gap: Mindler Survey 2022 – 93% of students (classes 8–12) aware of only 7 careers (doctor, engineer, lawyer, teacher, etc.).
  • Limited counselling: Only 7% received formal career guidance.
  • Mismatch of interests: India Skills Report 2024 – 65% pursue degrees misaligned with aptitude/market needs.

Digital Tools, Analog Mindsets

  • Access but poor pedagogy: Smartphones, AI labs exist, but schools remain exam-centric.
  • Skill deficit: Students graduate with degrees but little practical exposure.
  • EdTech problem: Focus on rote learning and test-prep; certificates (Coursera, Udemy) commoditised.
  • Policy lag: Only a few state boards introduce career readiness frameworks; most curricula outdated.

Government Initiatives and Gaps

  • Skill India Mission: Target of 400 million trained by 2022 – fell short.
  • Other schemes: PMKVY, PMKK, JSS, PMYY, SANKALP, Internship Schemes, etc.

Systemic weaknesses:

  • Fragmentation and duplication.
  • Emphasis on numbers trained, not quality.
  • Weak academia–industry collaboration.

Social and Political Risks

  • Unrest risk: Educated but unemployed youth can become a destabilising force (e.g., Mandal protests 1990).
  • World Bank warning: Lant Pritchett’s “Where Has All the Education Gone?” shows that literacy without productivity destabilises economies.
  • Socio-political instability: Unemployment can escalate into protests, crime, radicalisation.

Way Forward

1. Curriculum Reform: Integrate AI, data literacy, vocational and entrepreneurial modules in schools and colleges.

2. Career Counselling: Institutionalise structured career guidance in schools.

3. Skill-Industry Alignment: Apprenticeships, internships, and co-created courses with industry.

4. National Skilling Framework: Merge fragmented schemes under a single authority with measurable outcomes.

5. Reorient EdTech: Shift from rote to project-based, experiential learning.

6. Public-Private Partnerships: Involve corporates in financing and designing training programs.

7. Lifelong Learning: Encourage re-skilling and up-skilling for an AI-driven economy.

GS Paper I (Society & Population): Issues arising from demographic trends, youth bulge, and regional population imbalances.

GS Paper II (Social Justice & Governance): Education reforms, employability challenges, role of welfare schemes like Skill India Mission, PMKVY, PM Yuva Yojana, etc.

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