Demographic Dividend: India's Economic Growth Strategy

Key Points

• 1India is the world's fastest-growing big economy and the fifth largest, with a median age of around 28 years and 63% of the population of working age.
• 2The labor force participation rate stood at 55.2% in 2022, according to ILO.
• 3The Economic Survey for 2023-24 states that technological advancements have led to a declining capital-to-output ratio and an increasing capital-to labour ratio.
• 4The reluctance of Micro, Small and Medium Enterprises to grow in size and scale can be attributed to the compliance burden and costs imposed by outdated labour laws.
• 5The Economic Survey highlighted that only 4.4% of the workforce in the age cohort of 15-29 years is formally skilled.
• 6AI/ML is estimated by Statista to grow by nearly nine times to become a $826.73 billion worldwide market by 2030.
• 7India already has the second largest talent pool globally in this field but the current gap between demand and supply is 51% which is projected to widen.