The demographic dividend is held up as one of India's greatest advantages. More than 65% of Indians are under the age of 35. By 2028, India will have surpassed China as the most populated country in the world, according to a report published by the United Nations. With so many young workers, economic prosperity is easier to achieve, economists say.
But what is this population increase actually going to look like? This graph, made by Laird Research, gives you an idea of how India's demography will undergo drastic changes over the next few decades.
India is currently in a phase of demographic transition with the working age population, ages 15-65, growing faster than the very young and the old. This means the dependency ratio, a measure of the number of children and the elderly as a proportion of the overall population, is set to change substantially.
The dependency ratio was as high as 81% in India during the 1960s. It is set to drop to 46.2% over the next few decades as the demographic dividend sees millions enter the workforce.
But it's unclear whether India can create the massive number of jobs to support these huge numbers as they come to be of working age. So far, the prognosis is not promising. The unemployment rate is 13.3% for people aged between 15-29, according to the government's Labour Bureau in 2012-'13. One in three graduates is unemployed, it added.
According to a report by consulting firm McKinsey, India currently creates 75 million new jobs a year, but would need to have 115 million new positions open each year to absorb the population growth.
By 2030, India will have about 68.4% of its population within the working age category. That provides a dual benefit. There will be more workers, and more consumers to buy the goods they produce. The question remains over whether India will have created enough jobs to keep this increase in the working age population gainfully employed.
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But what is this population increase actually going to look like? This graph, made by Laird Research, gives you an idea of how India's demography will undergo drastic changes over the next few decades.
India is currently in a phase of demographic transition with the working age population, ages 15-65, growing faster than the very young and the old. This means the dependency ratio, a measure of the number of children and the elderly as a proportion of the overall population, is set to change substantially.
The dependency ratio was as high as 81% in India during the 1960s. It is set to drop to 46.2% over the next few decades as the demographic dividend sees millions enter the workforce.
But it's unclear whether India can create the massive number of jobs to support these huge numbers as they come to be of working age. So far, the prognosis is not promising. The unemployment rate is 13.3% for people aged between 15-29, according to the government's Labour Bureau in 2012-'13. One in three graduates is unemployed, it added.
According to a report by consulting firm McKinsey, India currently creates 75 million new jobs a year, but would need to have 115 million new positions open each year to absorb the population growth.
By 2030, India will have about 68.4% of its population within the working age category. That provides a dual benefit. There will be more workers, and more consumers to buy the goods they produce. The question remains over whether India will have created enough jobs to keep this increase in the working age population gainfully employed.
