Demographic Dividend in India will
remain only theoretical unless our
manpower becomes more educated,
aware, skilled and creative.” What
measures have been taken by the
government to enhance the capacity
of our population to be more productive
and employable?

GS 2
Governance
2016
12.5 Marks

Subject: Governance

India's demographic dividend, with 65% of the population being working age, presents an unprecedented opportunity for economic growth. However, as highlighted by the Economic Survey 2022-23, realizing this potential requires significant investments in human capital development through education, skilling, and capacity building initiatives.

Government Initiatives for Enhancing Human Capital

Education and Awareness

  • National Education Policy 2020 aims to transform the education landscape by focusing on holistic development and experiential learning.
  • Budget allocation for education increased from ₹1.04 trillion in 2023-24 to ₹1.28 trillion in 2025-26, demonstrating commitment to educational reforms.
  • PM e-VIDYA and DIKSHA platforms have democratized access to quality education through digital means.

Skill Development Programs

  • Skill India Mission has trained 1.4 crore youth and upskilled/reskilled 54 lakh individuals as of February 2024.
  • Pradhan Mantri Kaushal Vikas Yojana (PMKVY) provides industry-relevant skill training to youth.
  • National Apprenticeship Promotion Scheme facilitates practical training and industry exposure.

Innovation and Creativity Enhancement

  • Atal Innovation Mission promotes innovation and entrepreneurship through Atal Tinkering Labs in schools.
  • Start-up India initiative nurtures creative business ideas and supports young entrepreneurs.
  • Digital India program enhances digital literacy and technological creativity.

Employment Generation Measures

  • Make in India and Production Linked Incentive (PLI) schemes create employment opportunities in manufacturing.
  • MUDRA Yojana supports micro-enterprises and self-employment.
  • National Career Service Portal connects job seekers with employers.

Challenges and Way Forward

  • Bridge the gap between skill demand and supply.
  • Enhance industry-academia collaboration.
  • Focus on regional skill development needs.
  • Strengthen vocational education in schools.

The success of India's demographic dividend hinges on effective implementation of these initiatives. As demonstrated by countries like South Korea and Japan, investing in human capital development is crucial for economic transformation. The government must continue to focus on creating a skilled, educated, and innovative workforce to harness the true potential of our demographic advantage.

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