Model Answer
0 min readIntroduction
India, with a median age of 28.4 years in 2022 (United Nations Population Fund), is often touted as having a ‘demographic dividend’ – a period when the proportion of the working-age population is larger than the non-working-age population. This presents a significant opportunity for economic growth. However, realizing this potential depends on the effective utilization of this workforce. Understanding the present age structure and the availability of a skilled and employable workforce is crucial for informed policy-making. This answer will detail the current status of both, highlighting the challenges and opportunities that lie ahead.
Age Structure of India
The age structure of a population refers to the distribution of people across different age groups. India’s age structure is characterized by a young population, but it is undergoing a transition. According to the Census 2011, the proportion of children (0-14 years) was 30.01%, the working-age population (15-64 years) was 62.58%, and the elderly (65 years and above) was 5.74%. However, recent trends indicate a shift towards an aging population.
- Shifting Pyramid: The population pyramid is gradually moving from a triangular shape (high birth rates, low life expectancy) to a more rectangular shape (declining birth rates, increasing life expectancy).
- Declining Fertility Rate: The Total Fertility Rate (TFR) has declined from 3.2 in 1998 to 2.0 in 2019-21 (National Family Health Survey-5). This indicates a slowing population growth rate.
- Increasing Proportion of Elderly: The share of the elderly population is increasing, posing challenges related to healthcare, social security, and pension systems. It is projected to reach 20% by 2050.
Workforce Availability in India
The workforce refers to the population that is either employed or actively seeking employment. India has a large workforce, but its availability and quality are unevenly distributed.
- Workforce Participation Rate (WPR): The WPR, which measures the proportion of the working-age population engaged in the labour force, has been declining in India. According to the Periodic Labour Force Survey (PLFS) 2022-23, the WPR was 59.2% (male: 71.9%, female: 32.5%). This decline is attributed to factors like increased enrollment in education, particularly among women, and structural issues in the labour market.
- Employment Rate: The employment rate, which measures the proportion of the working-age population that is employed, was 55.7% in 2022-23 (PLFS).
- Unemployment Rate: The unemployment rate was 8.1% in 2022-23 (PLFS). Youth unemployment (15-29 years) is significantly higher, at 18.2%.
Regional Variations
There are significant regional variations in age structure and workforce availability.
| Region | Age Structure (0-14 years %) | Workforce Participation Rate (%) |
|---|---|---|
| Kerala | 23.6 | 50.1 |
| Rajasthan | 32.8 | 62.5 |
| Tamil Nadu | 26.8 | 54.6 |
These variations are influenced by factors like socio-economic development, education levels, and cultural norms.
Challenges and Issues
- Skill Gaps: A significant portion of the workforce lacks the skills required for modern industries. This leads to a mismatch between demand and supply of labour.
- Informal Sector Dominance: A large proportion of the workforce is employed in the informal sector, which offers low wages, job insecurity, and limited social protection.
- Gender Disparities: Women’s participation in the workforce is significantly lower than men’s, due to social and cultural barriers, lack of childcare facilities, and unequal pay.
- Underemployment: A substantial number of workers are underemployed, meaning they are working less than their full potential.
Government Initiatives
The government has launched several initiatives to address these challenges:
- Skill India Mission (2015): Aims to provide vocational training and skill development to millions of youth.
- Pradhan Mantri Kaushal Vikas Yojana (PMKVY): Provides short-term training courses to enhance employability.
- National Education Policy (NEP) 2020: Emphasizes skill development and vocational education at all levels of education.
- Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA): Provides guaranteed employment to rural households.
Conclusion
India’s age structure presents a unique opportunity for economic growth, but realizing this potential requires addressing the challenges related to workforce availability, skill gaps, and regional disparities. Investing in education, skill development, and creating a conducive environment for job creation are crucial. Furthermore, promoting gender equality and improving the conditions in the informal sector are essential for maximizing the benefits of the demographic dividend. A holistic and integrated approach is needed to ensure that India’s workforce is equipped to meet the demands of the 21st-century economy.
Answer Length
This is a comprehensive model answer for learning purposes and may exceed the word limit. In the exam, always adhere to the prescribed word count.