With a staggering population of over 1.4 billion, India emerges as a veritable powerhouse, representing approximately 18 per cent of the world’s total population.
Positioned favourably within the Demographic Transition Model, India finds itself in a highly advantageous stage, with a significant portion of its populace comprising the youth demographic. Remarkably, over 1 billion individuals in India belong to the working-age population, showcasing the country’s immense potential and human capital. Projections indicate that by 2030, India will achieve its lowest dependency ratio in history, standing at a mere 31.2 per cent.
Moreover, a significant turning point is anticipated by 2056, as the young dependency ratio, encompassing individuals below the age of 15, will surpass the old dependency ratio, comprising those aged 65 and above.
This pivotal development heralds the dawn of a prosperous era, characterized by a burgeoning young populace ready to contribute to society. This flourishing young population is not only a valuable asset for India but also holds immense significance for the global community.
Through strategic investments in education, skill development, and healthcare, this burgeoning human resource will evolve into a vital human capital, not only benefiting India but also catering to the diverse needs of the world.
Projections reveal that India is set to supply approximately 24.3 per cent of the global workforce over the next decade, solidifying its position as the foremost provider of human resources worldwide.
With nearly 26 per cent of the population below the age of 14 years and nearly 67 per cent in the age group 15 to 64 years, India has a median age of 28.4 years which is relatively very young compared to most other major economies.
For instance, the median age in Japan is 48.6 years, in the USA is 38.5 years, and in China, it is 38.4 years. Considering a rapidly ageing population in the developed countries which will pose a challenge with respect to labour supply, India’s role as the provider of the workforce becomes massively significant.
The human resource of India is well poised to bring it a competitive advantage in the manufacturing and services sectors.
India is also witnessing a rising trend in women empowerment, both in terms of the Gross Enrolment Ratio (GER) and the Female Labour Force Participation Rate (LFPR). About 49 per cent of the total enrolment in higher education in India now comprises of women.
The LFPR which was on a decline for the past few years is now expected to rise. With such a trend, India is expected to witness increasingly greater participation of women in the workforce in the coming years.
India has exemplified its success in leveraging its demographic dividend in sectors such as Information technology (IT) and Business process outsourcing (BPO) services. With the largest pool of graduates in STEM (Science, Technology, Engineering and Mathematics) and a huge English-speaking labour force, India is an outlier vis-a-vis other countries in being best placed to harness its demographic dividend.
In fact, in STEM itself India adds approximately 2.14 million graduates annually and with a figure of 47.1 per cent of women in STEM fields, it is also the world leader in STEM women graduates.
Such a large pool of India’s human resources is ready to offer both India and the world a cohort of skilled and talented workforce. To complement this force, India’s semi-skilled labour force also provides the capacity to support a competitive manufacturing ecosystem in India which can address not only the domestic aggregate demands but also add significantly to the global supply chain.
In sectors such as construction, public services, labour-intensive manufacturing and services like trade, transport, tourism and e-commerce, Indian human resource is set to be deployed.
Urged by Indian Prime Minister, Narendra Modi that India should aspire to become the world’s human resource capital, India is well set to achieve this goal by exporting the surplus labour force of India to abroad in order to capitalise on employment opportunities.
In this regard, India has been carrying out numerous skilling and training programmes for its workforce through National Skill Development Mission, Pradhan Mantri Kaushal Vikas Yojana, and establishing Sector Skill Councils, amongst other such measures.
To begin with, India has been focusing on three key regions to deploy its workforce after proper training and skill acquisition – Central Asia, Europe and Australia. Central Asia faces a labour shortage and a constant demand for workers, Australia needs skilled manpower in the hospitality sector, and several European countries are in need of skilled healthcare personnel, especially for geriatric care.
India, therefore, is aiming to harness these demands through the supply of its skilled workforce in these regions first. With a forecast of 40 to 50 million surplus labour force in India in the coming years, India is looking to meet not only the domestic labour supply needs but also to offer its workforce to the world as well.
India’s human resource is going to play a key role not only in India’s own economic growth but will also aid in the development of the entire world by meeting the labour shortages faced by a number of countries in the world today.
India’s position as the human resource capital is propelled by its favourable demography and India’s capability to harness this demographic dividend through a robust educational ecosystem, technological advancements, skill training, global recognition, and cultural adaptability.
