By IANS
New Delhi : India’s working people of 15-64 years will increase from 62.9 percent of the population in 2006 to 68.4 percent in 2026, enabling the country to harness demographic dividends, the Economic Survey for 2007-08 said Thursday.
The survey said if India can “get the skill development act right”, then the huge working population would bring maximum benefit to the country.
“In India the ‘demographic dividend’, which manifests in the proportion of working age group of 15-64 years, will be increasing steadily from 62.9 percent in 2006 to 68.4 percent in 2026,” the survey said.
“For actual tapping of the demographic dividend, it is necessary not only to ensure proper healthcare but also a major emphasis on skill development and encouragement of labour-intensive industries.”
The projected decline in the dependency ratio (the ratio of dependents to the working age population) from 0.8 in 1991 to 0.73 in 2001 is likely to decline to 0.59 by 2011.
The survey indicated that while most developed nations are facing an ageing population, India’s youth power would be an added advantage.
“This decline sharply contrasts with the demographic trend in the industrialized countries and also in China, where the dependency ratio is rising.”
“Low dependency ratio gives India a comparative cost advantage and a progressively lower dependency ratio will result in improving competitiveness.”
The country however requires a thrust to create a pool of skilled persons in proportion to industry trade and service sectors requirements.
Such an effort was necessary to support the employment expansion envisaged as a result of inclusive growth including, in particular, the shift of surplus labour from agriculture.
However, it warned that unless India’s youth pool gets the skills required, the country would face a “demographic nightmare”.