We are a country that adds a million people to workforce every month, progressing towards the achievable target of being the youngest. Our working age population is expected to grow by a third over the next three decades. India is experiencing a youth bulge, but is the demographic dividend of India becoming a burden?
To support enormous workforce, we need to create 10-12 million jobs every year but basis government statistics our growth rate for last five years was merely 1.1% and only 5 million jobs have been added during that period. Rising unemployment and peaking demographic dividend would prove to be dangerous for our economy.
We face issues related to rising population and enormity of creating jobs is fathomable task for such a large population. Indian industry is more focused on capital intensive sectors and do not support large number of workforce added to labor market, at the same time traditional jobs are getting extinct as technology is evolving at an unprecedent rate.
Indian economy is facing the challenging scenario of tough global competition, rupee holding its ground firmly, rising cost of factors of production. All these factors combined are leading to decrease in our export competitiveness and is exerting pressure on manufacturing industry leading to negative sentiments about the revival of growth and job creation in short to medium term.
With the scant work opportunities, minimalist job addition, countries refusing to extent trade agreements to services sector and tightening of visa & work permits, decreasing manufacturing output, constricting exports, uncertain IT & services sector and stagnant domestic demand Indian economy is entering period of turbulence, uncertainty, negative sentiments and lower GDP growth rate. We will lose the opportunity which our young nation provides to us and instead of reaping dividends of our demography it might become a burden.