The big opportunity

Source: The Hindu

Relevance: This article explains the advantages of the rising young population.

Synopsis:

A rising youth population in India can provide many benefits to India.

Introduction:

According to various international studies, the median age in India would be 28 years by 2022-23, in contrast to 37 in China and 45 in Western Europe. This is an enormous growth opportunity as India will have the highest number of people in the workforce.

Challenges due to Covid-19:

1. As per an Organisation for Economic Co-operation and Development (OECD) study, the equivalent of five years or more of per capita income is likely to be lost by the end of 2021 due to Covid-19.
2. The World Bank mentioned that the world would witness deep global recessions fuelled by lowered investments, displacement of human capital, and disintegration of global trade and supply chains.
3. The effects of increased use of plastics and the generation of bio-medical wastes during the pandemic will cost, fisheries, tourism, and maritime transport industries, an additional $40 billion, according to a UN Environment Program report.

Advantages of rising young population:

1. India’s non-working population would be outnumbered by the working population, leading to a favourable demographic dividend. This will accelerate urbanisation and the growth of industries.
2. The purchasing power of the populace will increase. It will open up a bigger domestic market, thus attracting more investment and increasing opportunities.
3. The younger population will be more climate-conscious. This can simply be explained by younger generations seeing the real-time impact of climate change. Further, they will be more inclined to act towards a greener tomorrow.
   • This is also clear by a UN report on climate change. The report mention that close to half a million youth around the world have taken (or are taking) action against climate change through initiatives at their homes, schools, and communities.
   • This is the reason the Climate Change Performance Index (CCPI), 2021, puts only two G20 (or Group of Twenty) countries — India and U.K. — in the top 10.

Challenges with rising young population:

COVID-19 and the subsequent lockdowns have deepened the Inequality in India.

The dominance of the informal economy makes the government subsidies and employment schemes a difficult one for all benefactors to reap the benefits.

Suggestions:

1. The need of the hour is for public-private partnership (PPP) models to bridge the skill gap.
2. Education and skilling are also key components in enhancing the capabilities of the growing young population
3. Labour-intensive sectors need to be better supported for further job creation.
4. Government policies must ensure that they comprehensively cover all aspects aimed at increasing human development and standards of living.

Terms to know:

• Organisation for Economic Co-operation and Development
• World Bank