South Asia, India risk squandering demographic dividend: World Bank | Current Affairs | Vision IAS
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South Asia, India risk squandering demographic dividend: World Bank

Posted 04 Apr 2024

1 min read

  • As per Jobs for Resilience, South Asia Development Update” released by world bank, South Asia region including India is not reaping its demographic dividend.

 

  • Demographic dividend is increased economic growth potential that can result when share of working-age population (15 to 64) is larger than non-working-age.
    • India is expected to enjoy this window for 37 years starting 2018 and up to 2055.

 

  • Issues in harnessing demographic dividends
    • Jobless growth: Employment ratio (employment relative to total working-age population) is only 59% (2023) in South Asian countries, lower than other emerging economies (~70%).
      • Exceptionally low shares of women in employment
      • Weak employment trends in non-agricultural sectors
    • Private investment has slowed and growth is mainly driven by public investment
    • Slowing global growth and heightened risks

 

  • Recommendations
    • Greater openness to international trade by reducing barriers to trade.
    • Development of flexible labour laws and efficient land markets
    • Investment in Infrastructure with a focus on transportation and agricultural sectors 
    • Improving Female labor force participation by wage subsidies, tax benefits etc.
    • Improved human capital for easy switching of employment from agriculture to non-agriculture.
  • Tags :
  • Employment
  • Jobless growth
  • Demographic Dividend
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