Demographic dividend refers to economic growth potential that results from demographic transition, i.e., shift towards increased working age population.
The demographic dividend underscores on the fact that increased labour supply will increase the production of goods and services on one hand and declining child dependency ratio will boost savings and investment on the other. However, this may not be realized automatically but depends upon a right economic policy that are focused on increasing the productivity and hence empowering the citizens – more educated, skilled, innovative.
Following measures are taken by the Government to reap the demographic dividend:
• Increasing labor productivity: Vocational training is provided under kaushalbharatkushalbharatyojana; improving expertise to people from minority communities in their traditional arts is done under USTAAD scheme; enhancing the skills is done under Skill India Mission; finally accreditation is acquired skills is also done.
• Improving employability: Inititiaves as SETU(Self employment and talent utilisation) and Atal Innovation Mission help in fostering innovation; Schemes as start up India, stand up India strive towards developing entrepreneurship qualities in people.
• Improving educational performance: Initiatives as SWAYAM (MOOC) provide quality education to large number of students.
• Focus on low-income population: Initiatives asgrameenkaushalvikaasyojana focus on skilling rural people in agro-allied industry; Schemes as NaiManzil provide integrated input of formal education and skill training along with certification.
• Women’s employment: As demographic transition results in greater women coming into the work force schemes as relaxed age limit for higher education;nairoshni focus on improving leadership qualities of Women.
In order to optimally enhance the production of maximum numbersand reap the benefits of demographic bonus India is experiencing apart from measures taken a improved focus on infrastructural facilities and on health and education would lead to inclusive growth.