6 Apr 2022 5:42 p.m
The Indian economy will need more educated workers in the coming decades to ensure that the aging demographic does not hamper the country’s economic recovery. This is pointed out by the country’s leading industry association.
India’s leading industrial association, the Confederation of Indian Industries, has done so before that warnedthat the country’s demographic dynamics could become a burden if there are not enough jobs and the required qualified workforce.
In a report entitled “Using India’s demographic dividend to boost growthThe association argues that not only is time short, but the increase in India’s working-age population, while necessary, is not sufficient to sustain economic growth.
The number of people of working age (15 to 64) in India is expected to increase by another 183 million between 2020 and 2050. The report states:
“If India does not create enough jobs and its workers are not adequately prepared for those jobs, the demographic transition can turn into a burden. Education and skills development will be the key enablers to harvest that dividend.”
According to the report, India’s working-age population will decrease in the decade after 2050. The years 2020 to 2050 would therefore offer India a short window of opportunity to “realize the demographic dividend”.
In the document, the industry association points out that if India is to become an economic powerhouse, it must provide quality schooling, relevant higher education and skills development aligned with industry needs.
Chandrajit Banerjee, Director General of the Association, stated:
“The children did not go to school for two years because of the pandemic. The resulting learning losses have exacerbated the already large learning gaps that existed before the pandemic.”
He called for urgent action to close these learning gaps.
According to the report, the proportion of formally skilled workers in the total workforce is 24 percent in China, 52 percent in the United States, 68 percent in the United Kingdom and 80 percent in Japan, while in India it is a meager three percent. Banerjee added:
“In addition to government initiatives, corporate investment in employee education and training should continue to play a crucial role in meeting the need for a highly skilled workforce. Greater government-industry collaboration is therefore key to upskilling the workforce emerging workforce.”
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