EconomyGS3-Economy
Demographic Dividend: India's Economic Growth Strategy
The article discusses India's demographic advantage and the need for reforms to harness its potential for economic growth. It emphasizes the importance of ongoing reforms, skilling, and addressing the impact of AI/ML.
September 18, 2024
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Small and Medium Enterprises to grow in size and scale can be attributed to the compliance burden and costs imposed by outdated labour laws.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.
Important Terms
Demographic DividendEconomic GrowthSkillingAI/MLLabor Force
UPSC Current Affairs
Last Updated: 7/16/2025