[Answered] Discuss the role of education in harnessing India’s demographic dividend. How can the education sector drive and sustain economic growth?

According to the United Nations Population Fund (UNFPA), a demographic dividend means, the economic growth potential that can result from shifts in a population’s age structure. It occurs mainly when the share of the working-age population (15 to 64) is larger than the non-working-age share of the population (<14 but >65 years). India has one of the youngest populations in an aging world.

Role of education in harnessing this potential:

• Human capital formation: Education is the main way that people learn new abilities, skills, and knowledge. Increased economic output results from a workforce that is more productive and flexible. According to ASSOCHAM, only 7 % of MBA graduates have employable skills in India, and only around 20-30 % of engineers find a job suited to their skills. India may not be able to take advantage of the opportunities, due to a low human capital base and lack of skills.
• Employment: The nation needs to create ten million jobs per year to absorb the addition of young people into the workforce. Education and skill development programs can enhance employability by aligning education with the needs of the job market.
• Culture of entrepreneurship: By instilling problem-solving, critical thinking, and innovative skills, a robust educational system promotes an entrepreneurial spirit. Entrepreneurs can develop new ventures, goods, and services that can boost the economy and create jobs.

How can education drive and sustain economic growth?

• Skill development: According to the 2015 Report on National Policy on Skill Development and Entrepreneurship, only 4.7% of India’s total workforce had received formal skill training, compared to 52% in the United States, 80% in Japan, and 96% in South Korea. Skill development increases the employability of the young population. The government has established the National Skill Development Corporation (NSDC) with the overall target of skilling/upskilling 500 million people in India by 2022.
• Internationalization of higher education: NEP 2020 seeks to facilitate faculty/student exchanges & research, teaching partnerships & signing of MOUs. For eg, IIT Madras & IIT Delhi have signed MOU to set up foreign campuses in Tanzania & Abu Dhabi.
• Collaboration with academia and global partnerships: The focus is to make India an R&D hub and promote ease of doing research along with ease of doing business. Global partnerships with the US, Japan, and EU & programs like the Initiative on Critical and Emerging Technologies (iCET) & Quad fellowship have enhanced collaboration in high-end technology areas.

Conclusion:

India can unleash the potential of its young people, increase productivity, foster innovation, and support long-term economic growth by investing in education. The education industry needs extensive reforms, more funding, and a focus on quality and inclusivity to meet these objectives.