Q2. “While we flaunt India’s demographic dividend, we ignore the dropping rates of employability.” What are we missing while doing so? Where will the jobs that India desperately needs come from? Explain.

Model Answer:

Introduction

India’s demographic dividend, the potential economic advantage of a large working-age population, is often celebrated as a driving force for national growth. However, the simultaneous decline in employability challenges the ability to fully harness this potential.

Body

What India is missing? 

1. Skewed Focus on Quantity Over Quality: While India emphasizes generating jobs, inadequate focus on enhancing skill quality has led to a workforce ill-equipped for modern industry demands. National Sample Survey Office (NSSO) data indicates that only about 2% of Indian workers are formally skilled, showing an urgent need for skill-focused reforms.
2. Educational Mismatch: India’s education system prioritizes academic achievements over practical skills, creating graduates unfit for industry-specific roles. An Associated Chambers of Commerce and Industry of India (ASSOCHAM) report found that over 90% of graduates lack employment skills, pointing to a clear gap between educational outcomes and job market needs.
3. Slow Growth of Labor-Intensive Sectors: Traditional labour-intensive sectors like manufacturing, textiles, and construction have grown sluggishly, constraining job creation. Despite initiatives like “Make in India,” slow progress in easing regulatory burdens and infrastructure bottlenecks has limited the expansion of industries with high job potential.
4. Overlooked Informal Sector Development: India’s informal sector, employing over 80% of the workforce, is often overlooked in policy frameworks. This sector requires support through social security, skill enhancement, and market access to stabilize livelihoods and boost job quality.

Potential Sources of Future Jobs

1. Service Sector Innovation: Digital and green services (e.g., fintech, clean energy) can drive employment if backed by skill training and sectoral reforms.
2. Agriculture-Linked Industries: Agro-processing and sustainable farming offer job potential if investment and technological adoption are incentivized.
3. Small and Medium Enterprises (SMEs): SMEs need financial and regulatory support to become employment generators in urban and rural areas alike.
4. Renewable Energy and Sustainability Initiatives: According to the Council on Energy, Environment, and Water (CEEW), India could create over 330,000 new jobs by 2030 in solar alone if investments continue to grow. 

Conclusion

‍India’s demographic dividend requires a nuanced approach that values employability as much as job numbers. Policy reforms in education, skill development, and support for emerging sectors are essential to creating sustainable job opportunities that maximise the demographic advantage.

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